Fixed-Rate Mortgages

A fixed-rate mortgage has the same interest rate and principal/interest payment throughout the duration of the loan. The amount you pay per month may fluctuate due to changes in property tax and insurance rates, but for the most part, fixed-rate mortgages offer you a very predictable monthly payment.

A fixed-rate mortgage may be a better choice for you if you are currently living in your “forever home.” A fixed interest rate gives you a better idea of how much you will pay each month for your mortgage payment, which can help you budget and plan for the long term.

You may want to avoid fixed-rate mortgages if interest rates in your area are high. Once you lock in, you are stuck with your interest rate for the duration of your mortgage unless you refinance. If rates are high and you lock in, you could overpay thousands of dollars in interest over the life of the loan. Speak to a local real estate agent or Home Loan Expert to learn more about how market interest rates are trending.

 

Pros Of Fixed-Rate Mortgages:

• Monthly payments do not change over the life of your loan, making it easier to plan a budget.

 

Cons Of Fixed-Rate Mortgages:

• You may end up paying more in interest over time if the rates are high.

 

Home Buyers Who Might Benefit:

• Buyers who are purchasing or refinancing their forever home.