Mortgage rate, the basic primer
Fixed Rate Mortgages Fixed rate mortgages are generally better options if security and stability are your primary concerns. Fixed rate mortgage loans provide a clear picture of how much you can expect to pay each month because the interest rate is fixed for the duration of the loan. Hence your monthly principal and interest payment will remain unchanged for the duration of the mortgage. While some adjustable rate mortgages have an introductory period during which the interest rate is fixed, a true fixed rate mortgage has one interest rate for the entire term of the mortgage loan. A distinct drawback of fixed rate mortgages is that the interest rates associated with them are generally higher than with adjustable rate mortgages.