What Is A Fixed-Rate Mortgage
- A fixed-rate loan is good for locking in a low interest rate. While your property taxes and homeowner’s insurance premiums may change, your principal and interest (in other words, your monthly payment) will remain stable for the life of the loan. Early on, most of your payment is applied to the interest and very little to the principal. Over time this trend reverses.
- If you plan to live in your home for more than 10 years – or if you simply want to minimize risk – a fixed-rate loan might be your best option.