A fixed-rate mortgage, or fixed mortgage, has an interest rate and monthly payments (loan premium and interest) that remain the same for the life of the loan.

Always ask your lender to provide a loan estimate. The loan estimate will provide a detailed breakdown of expected costs. Lender costs, such as points, origination fees, and application fees, can mask the true rate you are receiving.

In addition to the rate, loan servicing should be factored into a borrower's decision. Loan servicing refers to collecting monthly payments, paying taxes and other aspects of the loan that take place after the mortgage has closed and until it is paid off. Working with a smaller institution allows for more personalized service, as well as the opportunity for in-person payments.

When evaluating loan options, borrowers should be mindful of their credit scores, down payment, and the type of property they are financing. A 30-year fixed mortgage is typically the first option borrowers will consider. It is important for borrowers to evaluate their financial picture and goals when determining if a 30-year mortgage is right for them. For example, a lower payment and longer duration do not always equate to savings when financing.

Read about other mortgage considerations in our article Comparing Mortgage Offers Between Lenders.