Fixed Interest Rate

A fixed interest rate is attractive to borrowers who don’t want their interest rates fluctuating over the term of their loans, potentially increasing their interest expenses and mortgage payments. Fixed rates might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.



A fixed interest rate avoids the risk that a mortgage or loan payment will significantly increase over time. A common reason many people choose FRMs is because they are predictable. Unlike ARMs, whose monthly payments are bound to changing rates, the interest rate on FRMs do not change throughout the life of the loan. This predictability is enough to give peace of mind.