When shopping for mortgage alternatives, it is important to understand all the options available and what they each can mean for mortgage rates as well as for an individual's financial future. The most common types of home loans are 30 year fixed rate mortgages.

A 30 year fixed rate mortgage is predictable and that is often highly valued by a consumer today. It makes life somewhat easier to plan when it's known exactly how much is owed each month. Also, during the early years of a 30 year fixed rate mortgage when most of the amount paid is applied toward interest, there are many tax advantages.

It's not all good news. Interest rates are generally higher than the interest's rate paid in the beginning years of an adjustable rate mortgage. Also, if less than 20 percent of the price of the home is used as a down payment, then mortgage insurance will often be required.

Another type of home loan is the 15 year fixed rate mortgage. It has the same attractive consistency of the 30 year fixed interest rate mortgage, but with the added benefit that the consumers will own their home free and clear in half the time. The interest paid will be less than half. Also, the interest rate is usually lower with a 15 year term.

The 15 year fixed interest rate is not for everyone. It is harder to get, and it ties up more of a consumer's income with loan payments from 15 to 30 percent more than with a 30 year term. Although the lower amount of interest paid out makes this an attractive type of home loan, consumers should think carefully about whether it is the right kind for their individual needs.

There is also the biweekly fixed rate home loan. This type of loan is less common. The loan consists of 26 biweekly payments, deducted from a personal account, which equal 13 annual payments instead of the traditional 12 payments. The advantage of this is that a loan term can actually be shortened from 30 years to 18 or 20 years.

Registering for biweekly fixed mortgage rates does have costs, however, and consumers can shorten the length of their mortgage simply by making an extra payment or two each year without being tied into a program. If consumers make extra payments on their own, they need to consider a few things. The payment must be applied to the principal amount of the loan, and there must be no penalties for pre-payment.

Going with a fixed rate mortgage loan is often the best option depending on an individual consumer's unique situation. There are differences in the benefits of each type of loan, and differences in the drawbacks as well. When deciding on the way to finance a purchase as costly and important as a home, it makes sense to consider all the options and to get professional advice.