The 30 year fixed rate mortgage is the most popular fixed rate mortgage. 30 year fixed rate mortgages are now low based on history. 30 year fixed rates were 6.2% in early 2007, 8.2% in 2000 and 9.2% in 1995.
Your Fixed rate Mortgage payment amount is independent of the additional costs on a home sometimes handled in escrow, such as property taxes and property insurance.
Fixed Rate Mortgage rates vary dramatically with both term and payment type. Just as 10 and 15 year fixed rate mortgages will have lower rates, 40 and 50 year mortgages will have higher rates than the benchmark 30 year fixed mortgage. The type of amortization also affects the rate. Fully Amortized loans where principal & interest are both paid each month have marginally lower rates than typical Interest Only loans, which in turn have marginally lower fully indexed rates than Fixed Rate Pay Option loans.
Not all 30 year fixed mortgages are the same. There are interest only 30 year fixed mortgages and standard principal and interest 30 year fixed rate mortgages. The interest rates will be different between the two programs as well but the interest only will have a lower payment.
Fixed mortgage rates change throughout the day each and every day that the stock market is open. Therefore if you are shopping around for a fixed rate mortgage it is important that you shop around on the same day. Once you have your fixed rate locked in with a mortgage company it will remain that same rate until the end of your mortgage loan, unless there is a problem getting your mortgage loan closed before the rate lock expires. As long as you close and fund before the end of the rate lock expiration you will never have to worry about that fixed rate mortgage rate ever changing on you.
The daily movements of fixed rate mortgages are due to the trading of mortgage backed securities to investors who determine what credit risk level they choose to purchase.
A 15 or 20 year fixed rate will typically be a bit lower than a 30-year rate. Of course, the monthly payment will be higher as you will be paying the loan back in a considerably shorter time period.