So, what exactly is a Fixed-Rate Mortgage?
This traditional type of loan maintains its original interest rate throughout the life of the loan. So even if there are fluctuations in market rates over the term of your loan, your interest rate will not be impacted because your rate is already "fixed." Any change in monthly loan payments will be due to increases in other charges like insurance or taxes that will naturally occur over time. A fixed-rate mortgage may be a good choice for you if you plan to stay in this home for several years. If you choose a longer-term loan, you can plan for lower monthly payments. This type also helps you plan your monthly budget because the interest rate will not fluctuate.