In olden days fixed rate mortgages were more familiar among people opting for mortgage. Fixed rate mortgages were given for 30-Year period, 15-year period, Biweekly mortgages and convertible mortgages. The major advantage of fixed rate mortgages is that they present predictable housing costs for the life of the loan.

The 30-year fixed rate mortgage offers the lowest monthly payments of fixed rate loans. Some lenders may provide 25,20and even 40-year mortgage, but longer the term of the loan the more total interest must be paid. The 15-year fixed rate mortgage is offered to own their homes free and clear in half the time and for less than half the total interest costs of the traditional 30-year loan. The people prefer 15-year fixed rate mortgage to own their home before their children start college or before retirement. The major problem in this fixed rate mortgage is sometimes it is possible to pay higher monthly payments. In Biweekly mortgage the loan term is reduced to 18 to 19 years by requiring a payment for half the monthly amount every two weeks. It increases the annual amount paid by about 8 percent and in effect pay 13 monthly payments per year. The shortened loan term decreases the total interest costs substantially. The interest rate may still reduce further.