The most common type of loan program is the traditional fixed-rate mortgage. These loans have monthly payments that never change, and in most cases can be paid off at any time without penalty. Fixed-rate mortgages are available in a variety of ten to thirty year lengths, and will usually be completely paid off by the end of the loan term.

The monthly payment on your fixed-rate mortgage can be affected by an “impound account.” The lender will collect additional money each month, in addition to the principal and interest, plus any mortgage insurance premium. This is done so that the lender has money to cover taxes and insurance which are due. If either of these fees change, your monthly payment will be adjusted accordingly. However, because you have a fixed rate mortgage, your overall payments will be very stable and predictable.