A fixed rate mortgage has both positive and negative aspects to it, a lot of the decision on whether it is positive or negative will come down to your individual circumstances. Fixed rate mortgages was the original type of mortgage that has been available for many years and was the only type available. A fixed rate mortgage is where the interest rate of the mortgage is fixed for the term of the loan, so the repayments are the same from the fist repayment you made until the last repayment. Fixed rate mortgages can be mixed with adjustable rate mortgages. The usual terms are for 15 years or 30 years but you will also find that a mortgage can be negotiated for 10, 20 or 40 years. The cost of the mortgage is divided into equal payments over the term of the mortgage term.

The benefits of a fixed rate is that you always know that you will have the same payment every month which gives you certainty in your financial planning. If interest rates rise you will not be affected as your rate is fixed. As the years pass by the cost of the mortgage from your financial budget is actually reducing as you receive pay increases in your job and reduce spending in household requirements, which is normal when moving into a new house. Some of the negative points are that if interest rates decrease then your interest rate won't decrease. When you take out a fixed rate loan they always seem to be higher than the adjustable rate mortgages, so you are behind from the very beginning. Choosing a fixed rate mortgages is about being risk adverse to rising interest rates, if you believe on average over the term of the loan, the adjustable rate mortgages will be higher than a fixed rate would be a sensible option to consider.