A fixed-rate mortgage is a type of mortgage for which the interest rate remains the same over the life of the loan.
With a fixed-rate mortgage, the loan isn’t subject to fluctuations in interest rates.
Homeowners with this type of home loan are guaranteed the same interest rate for the duration of their loan. If rates are rising, borrowers seek to lock in lower rates of interest to save on interest rate costs over time.
Fixed-Rate Mortgage Benefits
Fixed-rate mortgages have some key benefits.
- Less risk.
- Locked-in rate with set payments.
- If you qualify for this loan, you are most likely in a position to afford your home.
- Payment won’t increase due to rising interest rates.
- More flexible mortgage term options than other mortgage programs: 10, 15, 20, 25 and 30 years.
Get Pre-Qualified for a Fixed-Rate Mortgage
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