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These mortgages are the most common type of mortgage. With a Fixed Rate Mortgage you will have monthly payments that will continue throughout the duration of the mortgage term. In this, you will be paying down both interest and the principal over time. Sometimes you may incur increases in property taxes and in your homeowners insurance, however, your monthly payments will remain stable.
There are a few different types of mortgages available. There are 30 year, 20 year, 15 year, and 10 year loans available. There are two distinct features of Fixed Rate Mortgages. The first distinction is that the interest rate will remain fixed for the entire duration of the loan. The second is that payments for the loan are structured so that you will re-pay the loan at the end of the term. Both the 15 year and 30 year mortgages are the most common fixed rate loans.
At the beginning of the amortization period of a Fixed Rate Mortgage the majority of the loan payment is used to pay the interest on the loan. As time goes on this gradually shifts to paying more of the principal amount.