When a customer is out looking to get a new mortgage, either to buy a home or to refinance a current mortgage, there are two primary options: fixed rate and variable rate. This article is going to focus on the benefits of fixed rate mortgages, and some reasons why now is a good time to get a fixed rate mortgage.

There are two primary benefits of taken out a fixed rate mortgage on your house. The first is the fact that you know going in what your payments will be over the entire course of the loan. While many fixed rate mortgages do have an introductory period with a slightly lower rate (generally 18-24 months), both the introductory and subsequent rates are fixed at the time of the loan. This means that individuals on a static budget will be able to plan for a specific payment each month for the entire term of the loan. The second benefit is the fact that if interest rates change during the period of the loan, this does not affect the payments that will have to be made. With a variable rate mortgage, if interest rates go up, so do your payments.

This brings us to our second point, which is that now is a very good time to lock in a fixed rate mortgage. With interest rates as low as they have been in a long time, it is likely that over the course of a mortgage interest rates will rise. While a homeowner with a variable rate loan would be drastically affected by these changes, one with a fixed rate would be enjoying a discount on the current interest rates.

If you have even been considering taking out a mortgage or refinancing your home, take a few minutes to find out what type of savings you could have with a new fixed rate mortgage.

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