Definition
A home loan with an interest rate that remains the same for the entire term, ensuring steady monthly payments over time.
What to consider
- Enjoy the certainty of unchanging payments over the life of your loan.
- It simplifies long-term planning and budgeting.
- Regularly compare your rate to market trends in case refinancing is beneficial.
Real world scenarios
- Martha secures a 30-year fixed-rate mortgage at 3.5%, preserving the same monthly payment for the entire term.
- Carlos chooses a 15-year fixed option for faster equity growth, though his monthly payment is higher.
- Leon appreciates the stability of fixed rates, sidestepping any surprises from economic shifts that might raise interest.
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