With a fixed rate mortgage, the interest rate does not change for the term of the loan, so the monthly principal and interest payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.

Payments on fixed-rate fully amortizing loans are calculated sot the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.  Generally, 15 year rates are about a half a point better in rate than 30 year fixed rate loans.  Payments are higher but the term is shorter.