Conventional or Fixed-rate Mortgage
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy to plan and budget for, and can help protect against inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently more lenders have begun offering 20-year loans. With a shorter-term loan, the payments will be higher but the interest will be lower. With a longer-term loan, the monthly payments will be lower but you’ll pay more in interest over the life of the loan.