The Conventional fixed rate mortgage loans, also known as conforming mortgages, are the most widely used and popular mortgage type in the market place. These mortgages are currently backed up by Fannie Mae and Freddie Mac and carry a national maximum loan limit of $453,100.
Guidelines and Parameters
A fixed-rate mortgage offers a predictable, straightforward monthly payment. With fixed-rate mortgages, your interest rate (and your total monthly payment of interest and principal) will remain the same for the entire term of the loan. This predictability allows homeowners to budget for the future more effectively.
30-year fixed rate
This is the most common mortgage that homebuyers compare rates to. The rate is good for 360 months (30 years) and is amortized over that time period to payoff.
20-year fixed rate
Typically there is not much difference in rate between the 30-year fixed and the 20-year fixed rate mortgage. This rate is based on 240 months and as the term decreases to pay back, the payment owed increases.
15-year fixed rate
This mortgage will be due in full in 180 months. It will have an even higher payment than the 20-year term.
10-year fixed rate
The 10-year fixed rate is the shortest term available right now. It is due in 120 months and accompanies the largest payment.