Fixed loans are the safest way to take out a mortgage. The two most commonly used types of mortgage loans are 30 year and 15 year fixed loans. There are advantages to both of these loans, so you simply need to make the best decision for your current and future situation.

A 30 year loan is a great loan to take out because the monthly payments will be lower. This loan requires you to make a set mortgage payment each month for 360 months. Of course, you can likely pay extra each month and reduce the overall amount of money you have to pay on the loan. The only things that can change with this loan are the taxes and the PMI could be eliminated after five years. This loan is perfect for first-time homebuyers or anyone else that wants to have a lower monthly payment on a home purchase.

A 15 year mortgage is a great option if you have extra money to pay each month. The best feature of this type of loan is that the fixed payment will only last for 180 months, instead of 360 months. If you are able to comfortably afford a 15 year mortgage, you could save countless thousands of dollars over the life of the loan.

The one thing to also consider is the fact that the market usually has some pretty good rates. If you are unsure of which type of loan is better for you, consider this. You may want to take out the 30 year loan because then you will always have the lower monthly payment. This will keep you out of a bind if you ever have a month where you need additional money. The 15 year loan will always require a higher payment. You can easily turn your 30 year loan into a 15 year loan by paying the additional principal each month. This will reduce the overall length and cost of the mortgage payment. You will also have the flexibility to not pay the extra money if you are ever in a bind.

Both of these loans have many advantages. You just need to decide how comfortable you are making your monthly payments and go from there. A 15 year loan will require you to pay more each month, but you need to make certain you can always make the payments. The 30 year loan will reduce your payment and allow you to pay the loan off sooner if you are able to put extra on your mortgage payment each month.