The Primary Benefit Of A Fixed-Rate Mortgage
The top reason homeowners choose fixed-rate mortgage is because the fixed-rate mortgage is predictable. Each month, until your loan is repaid, your principal and interest part of your mortgage payment remains the same. For some households, the unchanging nature of a fixed-rate mortgage feels “secure”. It can be simpler to plan a financial future when you know exactly how much you’ll owe month after month after month. However, this kind of mortgage rate stability comes at a cost. 30-year fixed mortgage rates and 15-year fixed rate mortgage rates get “pumped up” by lenders because, in a fixed-rate transaction, the bank bears all of the risk.