Fixed-rate mortgages
If you don’t like surprises, you’ll like fixed rate mortgages or FRMs. With this traditional loan product, interest rates and monthly payments never change, even if market rates change. Because FRMs are fully amortizing, you won’t end up having to refinance a balloon payment. Fully amortized means your mortgage will be completely paid off at the end of its term as long as you always make scheduled payments. A 30-year FRM is the most popular, but you can find shorter and longer terms ranging from 10 years to 50 years. The shorter the loan term, the higher your monthly payment, but it’ll likely have a lower rate.
