Fixed rate mortgages are available for 10, 15, 20, and 30 year terms. Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Second, the payments remain level and are structured to fully repay the loan at the end of the term. The most common fixed rate loans are for 15 and 30 year terms.
As with most mortgages, during the early amortization period, a large percentage of the monthly payment is applied to paying the interest due. As the loan is paid down, more of the monthly payment is applied to principal. A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.
However, fixed loans generally do not impose any penalties for accelerating your pay off should you prefer to do so. This will result in saving on your overall interest paid. Some banks offer the option to make "bi-weekly” payments (though you can accomplish this without the assistance of your lender). Bi-weekly payments can shorten the term of the loan by calling for half the monthly payment every two weeks. Since there are 52 weeks in a year, you make 26 payments, or essentially 13 months’ worth of payments. This can significantly reduce your total interest paid and the term of your loan. For e.g. a 30 year term would be reduced to approximately 22 years if you consistently made bi-weekly payments.