There are many types of mortgages. One type that potential home owners will hear a lot about is a fixed rate mortgage. When looking for a mortgage it helps to understand the differences in each mortgage and what certain terms, like fixed rate, mean. This can help a home buyer choose the mortgage best suited for them. It can help them to make an informed decision. As the home buyer will find out fixed rate mortgages have some benefits over other mortgages.
First of all, there fixed rate refers to the interest rate. In the mortgage world there are two types of interest rates. There are fixed rate and flexible rates. Fixed rates stay the same for the life of the loan. The home buyer locks into the current interest rate that id offered when they sign the loan agreement. A flexible rate mortgage has a mortgage rate that changes.
With a fixed rate mortgage the home buyer has the benefit of having a mortgage payment that will be the same every month for the life of the loan. They will also know exactly the amount they are going to pay.
With a flexible rate mortgage the home buyer will have different payments each month as the interest rate goes up and down. They...
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