Fixed rate mortgages vary by term length and interest rates. Lenders also have different terms, however most loans are very similar to one another.
10 and 15 year mortgages have lowest interest rates due to the low repayment period. The downside is the fact that few borrowers can afford it.
The 30, 20, 25 and 15 year fixed rate mortgages are the most popular. The rate on the 25 is about the same on the 30 and lower than 20. The interest rate on the 10 and 15 are the same, while 20 is higher.
Usually there’s no rate advantage to choosing 30 year mortgage over 25, however the payment varies slightly due to shorter amortization period. If your goal is to pay off sooner, then go for 25. Payments are almost similar and you cut off extra 5 years of interest rates.
The 20 year long mortgages are made for borrowers who want to pay off the loan as soon as they can, but cant quite fit into the 15 year bracket, since it is slightly higher.
The 5 year difference in mortgages do make much difference in terms of interest rates, so if you can, always go for a shorter one. The payment is higher, but you brush off 5 years worth of interest instantly, which is always a positive thing.
| Term | Interest Rate | Fully Amortizing Monthly Payment Per $100,000 |
| 30 | 6.250 | 615.72 |
| 25 | 6.250 | 659.67 |
| 20 | 6.125 | 723.67 |
| 15 | 5.875 | 837.12 |
| 10 | 5.750 | 1097.70 |
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By Mortgage Team