FixedRate Mortgages FRMs Handling

A fixed-rate mortgage is a type of home loan where the interest rate remains the same throughout the life of the loan. This means that your monthly mortgage payment will stay consistent, making it easier to budget.

The key difference between a fixed-rate and adjustable-rate mortgage is how interest rates on the loan change over time. With an adjustable-rate mortgage, the interest rate can increase or decrease at predetermined times throughout the life of the loan, whereas with a fixed-rate mortgage, as its name suggests, your interest rate stays the same.

Benefits of FRMs include their predictability—since your interest rate doesnt change, youll know exactly what your payment will be each month—and potentially lower costs if market rates rise after locking in your fixed rate. Drawbacks could include higher initial rates compared to Adjustable-Rate Mortgages (ARMs) and being unable to take advantage of falling market rates without refinancing.