Fixed-Rate Mortgage
Fixed-rate mortgages maintain the same interest rate over the life of your loan, which means your monthly mortgage payment (principal and interest) stays the same for the life of the loan. Fixed loans typically have 15 year or 30 year terms, but some lenders offer flexible term lengths.
Pros
- Fixed monthly mortgage payment
- Easier to budget for
Cons
- Interest rates usually higher than introductory rates on adjustable-rate loans
- Need to refinance to get a lower rate
If you’re planning to stay in your home for some time and looking for the stability of a monthly payment that doesn’t change, a fixed-rate mortgage might work for you.