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Fixed Rate Mortgage
With a fixed-rate mortgage, the monthly principal and interest payments
are constant throughout the life of the loan.
When considering fixed-rate loans of different duration, the borrower makes a
tradeoff between interest cost and monthly payment. For example, you can make
smaller monthly payments with a 30-year than with a 15-year fixed rate. However,
you can repay the 15 year loan twice as fast
and save more than half the total interest costs.