Are you looking for a low risk, high predictability loan? If so, then maybe a fixed rate mortgage is right for you. Some of the features of a fixed rate mortgage include:

• a fixed interest rate
• very low risk
• high predictability
• the option of refinancing if a lower interest rate comes around
• the simplest type of loan available

Although the fixed rate mortgage is simple and easy to understand, it still requires a lot of thought. Buyers must ask themselves a couple of questions.

• What term fits best for me? (in other words, how long do you want to be paying for this loan?)
• What kind of payments can I afford?

A buyer must try and find the lowest interest rate possible. A short term loan combined with a low interest rate can yield lower payments and a quicker repayment of the loan. In the end, this combination means less interest paid over the life of the loan and money in your pocket.

Mortgages offered by Proloan are in 30 and 15 year terms. The single most important difference between these two loans is the amount of money you will end up paying for the loan.

The shorter term (15 year loan) means:

• Higher payments
• Shorter time that you pay for the loan, which in turn means:
• You pay more interest over the life of the loan

To illustrate, with a $100,000 loan at 6.5% interest, the difference between monthly payments for a 30 year and 15 year loan would be $239.04. The savings over the life of the loan would be $70,745.40 if you chose a 15 year loan.