What Is a Fixed-Rate Mortgage?
With a fixed-rate mortgage, your interest rate remains locked for the life of the loan. Isn’t that reassuring? Whether the market changes or fluctuates, your payments stay the same. But why do some borrowers choose this type of loan over others?
It comes down to predictability and control. Wouldn’t you agree that knowing your monthly payment stays fixed, no matter what happens with interest rates, brings peace of mind? However, are there any trade-offs? Longer loan terms may come with slightly higher rates due to the added interest rate risk.
So, does a fixed-rate mortgage sound like the right choice for you? It can make budgeting easier and protect you from rising interest rates. But, of course, every financial situation is unique. What factors should you consider when deciding on a mortgage type?
Let’s explore how a fixed-rate mortgage could align with your long-term goals, and we can help you navigate the process from start to finish. Ready to take the next step?