Fixed vs Adjustable-Rate Mortgages: Which One Is Right for You?
One of the most important choices you will have to make in 2025 when refinancing or purchasing a home is whether to take out an adjustable-rate or fixed-rate mortgage. Your monthly payment, overall interest expense, and long-term financial plans may all be impacted by this decision.
The differences between fixed and adjustable-rate mortgages, their benefits and drawbacks, and how to choose the best option for your circumstances will all be covered in this book.
1. What is a mortgage with a fixed rate?
An interest rate that remains constant over the course of the loan is known as a fixed-rate mortgage.
Important characteristics include:
Principal and interest payments are fixed each month.
Usually, loans have terms of 15, 20, or 30 years.
Defense against potential rises in interest rates
This kind of loan is frequently taken out by purchasers who need regular, predictable payments.
