A fixed-rate mortgage comes with a consistent interest rate for the entire loan term. To a home buyer this can be an ideal option as you can expect the same amount of mortgage payment per month. Being that a mortgage is typically one of the most expensive bills that the average homeowner has, it is a great way to secure and lock in an interest rate that stays consistent for the full term of the loan.
A positive feature with a fixed-rate mortgage is the principal (the amount the homeowner borrowed) is fully amortized, meaning that are the end of the term of the loan the homeowner does not own any entity money.
A negative feature about a fixed-rate mortgage is that IF interest rates go down, you are locked into the fixed rate mortgage for the entirety of the loan term originally agreed upon or if the loan is paid in full. However, it is common practice for buyers to refinance when the rate is lower. A fixed-rate mortgage is a low risk solution that most home buyers in the United States prefer.
