If you opt for a fixed rate loan, you have the security of always paying the same interest rate on your mortgage. It allows you to comfortably budget for your mortgage costs without worrying that they’ll go up from one month to the next.
While this seems like a great deal, especially when you consider that those with variable rate loans may find themselves in a position where they cannot pay for the increase, fixed rate loans have their issues. Often, a fixed rate loan has an overall higher interest rate.
It depends on your family’s situation which loan type you should choose. While you will be paying more in the long run for a fixed-rate loan, it will give you the security of knowing that your payments will never increase. No matter what the fluctuations in the market bring, you will have consistency.
For shorter loans, a variable interest loan may be more appropriate for you. Read more about them here.