| What
is a Fixed rate Mortgage?
Fixed-rate mortgages are the
most common mortgage for many homebuyers because the monthly payments
are stable. The interest rate you lock-in will be the same interest
rate you pay for the life of the loan, whether it's a 15-year or
30-year mortgage.
What are the benefits of a
fixed-rate mortgage?
- Inflation
protection.
If interest rates increase, your mortgage and your mortgage
payment won't be significantly affected. Even if your taxes or
insurance costs go up over time, your basic loan payment will stay
the same. This is especially helpful if you plan to own your home
for five or more years.
- Long-term planning.
You know what your monthly housing expense will be for the entire
term of your mortgage. This can help you plan for other expenses
and set long-term financial goals for yourself and your family.
- Low risk.
You always know what your payment will be, regardless of what
current interest rates are. This is why fixed-rate mortgages are
so popular with first-time buyers.
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