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 (principal and interest) 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. There are additional considerations to be aware of with fixed-rate mortgages: Your mortgage interest rate won’t go down, even if interest rates drop, unless you refinance your mortgage. Because the interest rate is generally higher than other types of mortgage loans, you may not be abl
