Fixed rate mortgages
allow for borrowers to pay their mortgage repayments
on a set monthly amount that will not be subject to
change over the course of the mortgage repayment process.
For example, if you purchase a home today under the
term of a 30 year fixed rate mortgage and your current
monthly mortgage repayment is $1,400 per month, twenty
five years from now your monthly mortgage repayment
will be the same amount. In other words, since a fixed
rate mortgage maintains fixed payments throughout
the entire loan term, it helps long-term homeowners
in planning their budgets and insulates them form
ever increasing interest rates.