What Is A Fixed Rate Mortgage?
A fixed rate mortgage or fixed interest rate mortgage is a mortgage where the interest rate is locked in or fixed for the the term of the mortgage, and does not change.
Benefit Of A Fixed Rate Mortgage
The benefit of a fixed rate mortgage is security and peace of mind for a borrower, knowing precisely how much their mortgage payment will be each month for the entire term of their mortgage. A fixed rate mortgage is often higher than a variable rate mortgage, however in comparison to a variable rate mortgage, the fixed rate does not change during the entire term of the loan.