Fixed Rate Mortgage-Fixed-Rate Mortgages charge a set interest rate that does not change throughout the life of the loan.
This rate will differ depending on the length of the loan, credit score, annual income, and current market interest rate trends.
Fixed-Rate Mortgages can be of value to you when buying a home because the monthly payment never changes, and it is easy to budget when you know exactly how much you will pay over the term of the loan.
However, with a Fixed-Rate Mortgage, interest rates are higher than an Adjustable-Rate Mortgage. People choose Fixed-Rate Mortgages for stability, not risk.
For more info, contact a HBLending Home Loan Expert.