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If you don’t want to worry about skyrocketing interest rates, a fixed mortgage is perfect for you. If you are not familiar with the term fixed mortgage, it is actually pretty simple. When you apply for and are approved for a fixed mortgage, your interest rate will be what it is on that actual day. It will never change, even if interest rates make a large jump in five years. Most consumers prefer a fixed rate mortgage since they will always know what their mortgage payments will be. This is essential, particularly if you are on an income that is a bit strained. You won’t have to worry about your mortgage payments going up over the years when you have a fixed mortgage. This takes a lot of pressure off of home owners and provides them with a safety net. Even if interest rates drop over the next few years, you have the option of refinancing your fixed mortgage at a lower rate. Since this doesn’t happen very often, most people feel secure that their fixed mortgage will not change. Interest rates usually go up not down, so you won’t have to worry about this when you have a fixed mortgage.

Related reading: Fixed Rate, mortgage