Mortgage News As with other types of loans, mortgages carry a certain interest rate, which is scheduled to amortize over a set time frame, usually 30 years. With a fixed-rate mortgage, the interest rate stays the same throughout the life of the loan, and so does the monthly payments borrowers make towards their mortgage. A 15-year fixed-rate mortgage has higher monthly payments (because you are paying the loan over 15 years, rather than 30), but over the course of the life of the loan, you could save thousands on interest. A 30-year fixed-rate mortgage has lower monthly payments, though you will pay more interest over the course of the loan. Extra payments applied directly to principal at the beginning of the loan can shave years from a 30-year loans lifetime. If the homebuyer chooses to take out a 30-year loan, the majority of his or her initial payments will be applied toward the interest payments of the loan. If a borrower stops making payments on their loan, the le