The most popular type of mortgage, the 30-year fixed-rate loan, is most appealing to borrowers who want to stay in their homes for a long period of time and who want to enjoy consistent payments during this period.

30-Year Fixed Rate Mortgage

• Helps keep housing expenses to a minimum.
• The mortgage interest may be deducted for income tax purposes.
• Can require a low down payment, sometimes only 3 or 5 percent.
• Offers consistent monthly payments. For example, a $150,000 mortgage loan @ 6.5% annual percentage rate (APR) for 30 years would have monthly payments of $948.10.
• Eligible properties include one-to four-family, owner-occupied principal residences; second homes and investment properties; and condos, co-ops, and planned unit developments. Manufactured homes are also eligible. (Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation).

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20-Year Fixed-Rate Mortgage

• With a 20-year fixed-rate mortgage, you build up equity in your home more quickly.
• You may save a bit of interest over the life of your loan. For example, on a $100,000 mortgage loan @ 8.25% annual percentage rate (APR), the 20-year fixed-rate mortgage can save you over $65,000 in interest payments when compared to a 30-year mortgage.
• As with all fixed-rate mortgages, interest on you loan never changes, bringing to you peace of mind that your principal and interest payments will remain level over time. However, higher monthly mortgage payments may make it more difficult to qualify for compared to the 30-year fixed-rate mortgage.
• Can require a low down payment, sometimes only 3 or 5 percent.
• Interest rate payments in the early years of the mortgage are comparable to a 30-year mortgage, allowing for a sizable mortgage interest tax deduction.
• Your monthly payments are significantly less that a 15-year mortgage, allowing you a greater chance to qualify for this type of mortgage. For example, a $150,000 mortgage loan @ 6.5% annual percentage rate (APR) for 20 years would have monthly payments of $1,118.36.
• Eligible properties include one-to four-family, owner-occupied principal residences; second homes and investment properties; and condos, co-ops, and planned unit developments. Manufactured homes are also eligible. (Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation).

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15-Year Fixed-Rate Mortgage

• You pay off a 15-year fixed-rate mortgage in half the time you pay off the traditional; 30-year fixed-rate mortgage. This shorter term makes it possible for you to build up equity in your home faster, which can let you move up more quickly to a more expensive home or save more in preparation for retirement or a child's education.
• This loan is particularly attractive if you're refinancing your mortgage because you shorten your loan term plus enjoy a lower interest rate.
• 15-year mortgages are usually offered at interest rates lower than those available with 30-year mortgages. However, higher monthly payments may make it more difficult to qualify for compared to the 30-year fixed-rate mortgage.
• Saves you a significant amount of interest over the life of the loan. For example, with a $100,000 mortgage loan @ 8.25% annual percentage rate (APR), the 15-year mortgage will save you $95,000 in interest payments over the life of the loan, compared to the same mortgage amount for a 30-year term.
• However, your monthly mortgage payments will be higher. For example, a $150,000 mortgage loan @ 6.5% annual percentage rate (APR) for 15 years would have monthly payments of $1,306.66.
• Can require a low down payment, sometimes only 3 or 5 percent.
• This shorter-term mortgage allows you to own your home outright sooner.
• Eligible properties include one-to four-family, owner-occupied principal residences; second homes and investment properties; and condos, co-ops, and planned unit developments. Manufactured homes are also eligible. (Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation).

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10-Year Fixed-Rate Mortgage

• You pay off a 10-year fixed-rate mortgage in half the time you pay off the 20-year fixed-rate mortgage. This shorter term makes it possible for you to build up equity in your home faster, which can let you move up more quickly to a more expensive home or save more in preparation for retirement or a child's education.
• This loan is particularly attractive if you're refinancing your mortgage because you shorten your loan term plus enjoy a lower interest rate.
• 10-year mortgages are usually offered at interest rates lower than those available with 20-year mortgages. However, higher monthly payments may make it more difficult to qualify for compared to the 20-year fixed-rate mortgage.
• Saves you a significant amount of interest over the life of the loan. For example, with a $100,000 mortgage loan @ 8.25% annual percentage rate (APR), the 10-year mortgage will save you $122,000 in interest payments over the life of the loan, compared to the same mortgage amount for a 30-year term.
• However, your monthly mortgage payments will be higher. For example, a $150,000 mortgage loan @ 6.5% annual percentage rate (APR) for 10 years would have monthly payments of $1,703.22.
• Can require a low down payment, sometimes only 3 or 5 percent.
• This shorter-term mortgage allows you to own your home outright sooner.
• Eligible properties include one-to four-family, owner-occupied principal residences; second homes and investment properties; and condos, co-ops, and planned unit developments. Manufactured homes are also eligible. (Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation).

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