Mortgage Handbook

Fixed-Rate Mortgages

Generally seen as the least risky type of real estate financing, fixed-rate mortgages shelter borrowers from unexpected interest rate payments, and guarantee a pre-decided monthly payment for the entire term or the loan.

Although this is a safe and convenient option for those living on fixed incomes, it can also prevent buyers from benefiting from lower interest rates in the future. Before committing to a long-term fixed-rate mortgage, it is a good idea to speak with a financial advisor about current economic conditions, and determine if “locking in” is truly the right course of action.