mortgage

3 types of mortgage loans for homebuyers

Fixed-rate mortgage
Fixed-rate mortgage © Ismagilov/Shutterstock.com

Fixed-rate mortgage

With a fixed-rate home loan, your interest rate remains the same for the life of the loan and the payment is split into equal monthly payments for the duration.

During the first few years, only a small portion of the payment pays off principal. Most goes to pay off interest.

"Fixed-rate home loans can be 10 years, 15 years or 20, but most popular is the 30-year because that makes your payment the lowest," says Floyd Walters, owner of BWA Mortgage in La Canada Flintridge, California.

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Claes Bell

Mortgage rates in Los Angeles

See this week's average rates for the 30-year fixed-rate mortgage, 15-year fixed-rate mortgage, 5/1 ARM and 30-year jumbo mortgage in Los Angeles.  ... Read more

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