A fixed-rate mortgage means your mortgage interest rate – and your total monthly payment of principal and interest – will stay the same for the entire term of the loan. This offers you consistency that can help make it easier for you to set a budget.
When might a fixed-rate mortgage make sense?
- If you plan on owning your home for a long time (generally 7 years or more).
- If you think interest rates could rise in the next few years and you want to keep the current rate.
- If you prefer the stability of a fixed principal and interest payment that doesn’t change.