Fixed Rate Mortgage
A Fixed Rate Mortgage carries the same rate of interest for the life of the loan. These mortgage loans can range in term from 10 years to 40 years.
In other words, if you have a 6.5 percent interest rate on your Fixed Rate Mortgage for 30 years, you will pay that same 6.5 percent for the entire 30 years. The payments will be calculated to include principal and interest.
PRO: Stability in payments. You will know your mortgage payment each month for the entire length of the loan.
CON: Typically, this option has a higher interest rate than other loan options.