A fixed-rate mortgage, is a type of a mortgage is a fixed interest rate mortgage where the interest rate remains the same through the term of the loan (as opposed to a variable interests rate mortgage). This means that your periodic payment amounts and the time to pay of the loan are fixed. The benefits are:benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.
Consistent, equal payments.
Stability against market rate fluctuations.
Keep in mind that fixed rate mortgages generally have higher interest rates than variable mortgages and are more expensive as the result. The reason for this rate difference is in lenders risk by taking on your mortgage on a fixed rate against potential market fluctuations.
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