Fixed loans are the most common types of mortgage programs where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.

30 Year Fixed

30 years fixed interest rate is one of the most desirable loan programs in the nation. Most people seek the low monthly payments and prefer 30 years fixed rate as compared to variable rate. The interest rates are volatile and always move up and down briskly, and therefore people like to stay with a constant fixed interest rate.

The term of a 30 year loan program is long and consequently you pay more interest over the life of the loan. 30 year fixed loan financing is recommended for borrowers who intend to stay in their house for a long period.

15 Year Fixed

15 years fixed interest rate is suitable for people seeking to pay the loan quickly and thus prefer the 15 year fixed rate as compared to a variable rate or 30 year fixed. However, the interest rate is fixed for 15 years despite the volatile and fluctuating interest rates, and therefore people like to stay with a constant fixed interest rate.

The term of a 15 year fixed loan program is short as compared to a 30 year fixed. Thus, monthly payments are higher but the loan amount pays off quickly and you pay less total interest amount over the period of the loan amount.

Advantages of Fixed Mortgage Terms:

Monthly payments and Interest rate are fixed for 15 or 30 years despite the interest rate fluctuations.

Fixed loan can be refinanced if the interest rates drop without any penalty.

.Disadvantages of Fixed Mortgage Terms:

Considerably high interest rate because of the long term financing and therefore you pay more interest.

Mortgage payments do not drop if interest rate drops. Unless you refinance into a shorter term loan.