Fixed Rate Mortgages
A fixed mortgage may be a good option to consider if you:
- - Expect interest rates to rise in the future
- - Plan to stay in the home for an extended period of time
- - Prefer the stability of monthly payments
- The interest rate will stay the same for the entire term of the loan. This means that your monthly principal and interest payments will remain the same for the life of the loan.
- A fixed-rate mortgage is available in a variety of term options.
Take Into Consideration
When choosing the loan term, you should consider how the length of the loan term will affect the payment amount and how much you pay in interest in the long-run. Consider:
- The monthly payment is typically higher on a shorter-term loan than on a longer-term loan.
- The overall interest you pay is higher on a longer-term loan than on a shorter- term loan.