Fixed Rate Mortgages

The beauty of fixed rate mortgages is that the interest rate never changes, no matter what. That means borrowers’ monthly mortgage payments are more stable, more predictable, and can help them financially plan out their entire year. However, a fixed rate mortgage also means that a borrower’s rate will stay put, even if rates go down. Therefore, in order to take advantage of dropping mortgage rates, a fixed rate borrower would need to refinance.