In a nutshell:
With fixed rate mortgages, your interest rate stays the same for the duration of the loan, and you generally have the lowest payments. They make up 75% of U.S. mortgages and are available as 10, 15, 20 & 30-year loans.
- A fixed-rate mortgage is a predictable and can provide long-term peace of mind and simplified budgeting.
- You know exactly what you'll pay monthly, so you can stick to a budget.
- If industry rates go down & you have a long-term fixed-rate mortgage, you'll want to refinance with a better rate.
- During the first few years of a fixed-rate mortgage, the lion’s share of your payments goes to paying off the interest.