A fixed rate mortgage is a home loan with an interest rate that is set for the entire duration of the loan. At least 75% or mortgages are set at a fixed rate. The main benefit is that you will know exactly what the interest and principal payments are going to be. If you agreed to pay say 6%, when the interest rate rises to 7.5%, you would not suddenly have a far higher monthly payment.

The drawback of a fixed rate mortgage compared to a an adjustable rate mortgage is