Pros and Cons of Fixed Mortgage

A fixed mortgage is one where the payment amount per month remains fixed throughout its term as does the interest rate. The pro of such a loan is it gives you a definite hard number to work with when budgeting your money. The interest rate is set in stone, so your payment will always be the same each month. the downside is your payment remains high when interest rates drop. If rates drop significantly, you could be paying far more than you should.