Under fixed rate mortgage the interest rate does not get altered and it is permanent for a certain time period. The added advantage of the fixed mortgage rate is that you know exact amount that you have to pay every month for a fixed period of time. It is totally opposite to Adjustable Rate Mortgage, as the rate of interest is not dynamic in nature, so while using the fixed mortgage rate the payments do not get changed.

You can easily make out within how much time length you can make a payment for the basic amount as well as the interest. When you opt for fixed rate mortgage the payment that you make monthly remains the same throughout the decided time period. It is obvious that you will only make a payment that is required by selling your house before the expiry of the time period.

Fixed Rate Mortgages are of two types:

- Fixed mortgage rate for 30 years.

- Fixed mortgage rate for 15 years.

There are also other time periods for example- ten or twenty years fixed mortgage rates but they are put into use very often.

You have the time period of thirty years to pay off your loan through the fixed rate of thirty years. During this period your rate of interest remains the same and your payment on a monthly basis is not altered. Usually this is the most preferred mortgage where you have the fixed period of time and get the minimal rates of interest.

Following are some of the advantages of the fixed rate mortgage for thirty years:

- The payments on a monthly basis are very nominal as compared to the fixed rate mortgage with a time period of fifteen years.

- The payments on a monthly basis stay the same for the full time period of thirty years and are not get altered.

- The rate of interest also remains the same.

- Fixed rate mortgage can help you to decide your future payments for the house.

- It is understood that the payments will remain the same even if the rate of interest gets altered with the time.

Following are some of the disadvantages:

- As compared to other alternatives of the mortgage you have a better payment on a monthly basis through the fixed mortgage rates. There are factors of security that through fixed mortgage rates the monthly payments will remain the same. The loan providers are also not aware of the fact that the rates of interest for the in the coming fifteen to thirteen years will be the same or not. For this reason of uncertainty they (The loan lenders) expect some payment from you.

- The rates of interest stay the same if under any circumstances there are some changes in the interest rates.

- High rate of interest should be paid rather than opting for a fixed mortgage rate of fifteen years.

Through the fixed mortgage rate for fifteen years the payments on a monthly basis is not altered, the rate of interest also remains the same and the loan is paid off in a fixed time period of fifteen years. This type of fixed rate mortgage is preferred by those people who have refinanced their loan of thirty years.

Following are some of the advantages of the fixed mortgage rate for fifteen years:

- The payments on a monthly basis stay the same for the full tenure of fifteen years.

- Through the mortgage rate of fifteen years the rates of interest is lesser as compared to the fixed mortgage rate of thirty years.

- The rates of interest also remain the same even if there are some alterations in the interest rates.

- Through the mortgage rate of fifteen years the equity for your house is increased at a faster pace.
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