Pros – You’re protected in the event interest rates rise. Consistent rates and payments make it easy to budget monthly.

Cons – To take advantage of falling interest rates you will need to refinance.  Unlike adjustable-rate mortgages, there is no lower introductory rate.

The biggest advantage of a fixed-rate mortgage loan is that the interest rate is locked in for the term of the loan. If interest rates rise – or even double or triple – you still reap the benefits of the low interest rate that you locked in at the start of your loan. Although adjustable-rate mortgages typically have several caps that determine how much your interest rate can rise, for many borrowers, a rate hike of a few percentage points can be burdensome.