There are several different types of mortgages out in the market these days and most of them are pretty legitimate, a few years ago in the housing boom there were a number of unscrupulous mortgages that have since disappeared.
The most common and the most popular mortgage is the fixed rate mortgage. Fixed rate mortgages are pretty basic in that you pay your loan off at a set percentage range for a predetermined period of time, typically 15 or 30 years.
Fixed rate mortgages are popular with the masses because it’s simple with standard interest rates and payments that never change throughout the life of the loan. It depends on the mortgage company but these loans are fairly stable and are very predictable.
The 15 year fixed rate mortgages are popular with many because they build equity much quicker and the interest rates are lower than the 30 year loans.
The 30 year fixed rate mortgages are popular because the longer term spreads the payments out and makes it possible for the borrower to afford a higher priced home and have lower monthly loan payments.
There are advantages and disadvantages to both 30 and 15 year fixed mortgages but this type of mortgage, the fixed rate mortgage, is by far the most popular with both home borrowers and home lenders.