QHow Fixed Rage Mortgages Work?
AFixed rate mortgages allow a borrower to know what all future monthly payments will be. Because the interest rate is fixed, your payments will not vary when you use a fixed rate mortgage. With a fixed rate mortgage, you calculate how long it will take to pay off all the principal and interest, and you arrive at a monthly payment. You will pay the same monthly payment though the entire term of the fixed rate mortgage. Of course if you sell your home before the end of the term, you can just pay off the balance that you owe.