A Mortgage with a fixed rate is a mortgage where the interest stays the same throughout the reypayment time.
Mortgage with a fixed rate are sometimes more expensive than other varieities of mortgage, and this is because of the risk involved. To illustrate this, if a person gets a Mortgage – fixed-rate when the base rate is 5%, and then the base rate increases to 11%, the home loan lender will be missing out on 6% of interest – so they may sometimes charge a little in addition to make up for this.
Mortgage – fixed-rate are fairly popular when the base rate is low, and can be good for a human being who wants to know how much they will be spending on a monthly basis.
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