Having a fixed rate mortgage is one of the more common types of loans or buying a home. It is very easy to understand and get. Most people know exactly what they are getting themselves into with this type of loan.
The big benefit of a fixed rate mortgage is the stability. No matter what the interest rates do, you will be guaranteed to pay the same payment month after month until the loan is paid in full.
This will help to make it easier to feel good about your loan. You will not have to wander what your next payment is going to be.
Some people are very anal about their bills and do not want to feel like they are gambling their life away.
These reasons make the fixed rate mortgage so appealing to everyone. The payments do not change so you have a better chance at being able to save some money for anything that you might have to fix, go on vacations, or make a new purchase for your home.
The loan is also a good idea for anyone that travels a lot. They will have the secure feeling of knowing that their payment will be the same when they get back from a trip and this can make it easier to enjoy the time away from home.
Many lenders will give a fixed rate will also give the option to pay off some of the principle early with no penalties.
This is a good way to lower the total amount of the payments or decrease the monthly payment that you make. The interest that is paid will depend on the real estate market when you get the loan.
You might want to talk to a real estate agent that can help you through this decision making process.