Choosing a traditional 30 year fixed rate mortgage allows your mortgage rate and payment to remain the same, regardless of how high interest rates rise.

A fixed-rate and payment make it easy to budget your finances and avoid the risk of rising mortgage rates.

When you plan on owning your home for a long period of time, a 30-year fixed-rate mortgage makes sense. Two types of 30 year fixed rate mortgages are available. The traditional 30 year fixed rate mortgage is a fully amortized mortgage, which means that at the end of the 30 year loan term, you have paid both the principle and interest off, leaving a zero balance and owning your home free and clear. The second option is to purchase or refinance using a 30-year fixed rate interest-only loan, where you retain the security of a low interest rate for the life of the loan and gain the financial flexibility to make interest-only payments when you need to. Use this flexibility to deal with the unexpected, or pay down high-interest debt - that's whats referred to as putting your mortgage to work for you.