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The majority of home loans you are likely to find are fixed-rate mortgages. These home loans usually have a lifespan of between fifteen and thirty years. And as the name indicates, the monthly payments and interest rates do not vary from one month to another.

One of the great advantages of fixed-rate mortgage payments, which makes them the preferred choice of many people, is their stability. You can easily predict what you expect to pay in the future and as a whole. Home loans where the interest rates are influenced by market rates put off many people due to the uncertainty involved since the rate will fluctuate from time to time. If you get a fixed-rate mortgage loan with a low interest payment, this will make your home loan quite affordable.

If you would like to take a fixed-rate mortgage loan, you will need to choose whether you would like one that takes either fifteen years or thirty years to repay. While some consumers like the 15-year loan since they won't have to take too long in making payments, others prefer the 30-year fixed-rate loans given that they have lower rates of payments. Before you make your choice, you need to understand the benefits and disadvantages of each type of fixed-rate mortgage loan.

* 30-year Fixed-Interest Rate Mortgage Loan

This type has the advantage of offering long-term loans that are not affected by prevailing market rates. Due to the longer period in which the payments are made, what a consumer pays every month is relatively lower. This in turn gives them the opportunity to make other investments.

The disadvantage of the 30-year fixed-rate mortgage loan is that in the long run, the interest paid is relatively higher. When making payments, you first of all pay the interest rather than the principal loan itself. As a result, building one's equity is more slow.

However, these disadvantages do not put off many borrowers. Given that they pay higher interests that are tax deductible, they are able to lower or even remove the federal income tax liability.

* 15-year Fixed-Rate Mortgage Loan

These types of loans are repaid over a shorter duration, thereby enabling the borrowers to build their equity relatively faster. When compared to the 30-year mortgages, the total interest paid is significantly lower.

The problem is that consumers have to make higher monthly payments. Consequently, the borrowers may have to settle for smaller houses.

After taking this issues into consideration, there are also other factors that you need to bear in mind. For instance, you may lower the principal loan every month by making prepayments. In you do this, you will be able to complete your payments before the end of the stipulated duration.

This article was written by Arek Zbikowski. For more information on fixed rate mortgages feel free to visit my site at http://www.atozmortgageguide.com