What is a fixed-rate mortgage, and should you get one?

A fixed-rate mortgage locks in your rate until you’ve completely paid off your mortgage.
A fixed-rate mortgage locks in your rate for the duration of your loan.
Many lenders offer multiple fixed-rate terms, including 30-year, 20-year, or 15-year fixed-rate mortgages.
A fixed rate can be a good option if you want a predictable monthly payment.

When you buy a home, you’ll choose between two basic types of mortgages: an adjustable-rate mortgage (ARM) and a fixed-rate mortgage.

An ARM locks in your rate for the first few years or so, then periodically changes over time — typically once per year.

A fixed-rate mortgage locks in your rate for the duration of your loan. Although US mortgage rates will increase or decrease over the years, you’ll still pay the same interest rate in 30 years as you did on your very first mortgage payment.

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This article was written by [email protected] (Laura Grace Tarpley, CEPF) and originally published on www.businessinsider.com