You know exactly what interest rate you will be paying

You know exactly what interest rate you will be paying. The risk with this type of loan is that interest rates might go up, but then again, interests can also go down and your payments will go down with them. The rates are usually attached to an interest rate index-the LIBOR rate (London Inter-Bank Offer Rate) is a popular one-and your payments will go up and down if the indexes change.
How will mortgage brokers decide whether I can get a mortgage loan?Mortgage brokers are looking for indicators that tell them that you can pay the loan back.In contrast, the interest rate of an adjustable-rate mortgage will change.How can I compare different mortgage loans?Mortgage brokers are required by law to provide you with an Annual Percentage Rate (APR).5 percent. For example, a loan might have a one percent interest rate, but when you add all the extra expenses, you will actually pay 1. It is usually a good idea to ask for a copy of your credit history before you go to your mortgage broker.
The APR is the best way to compare mortgage loans and decide which one offers you the best deal.A fixed-rate mortgage comes with an interest rate that will never change over the 15, 20 or 30 years that the loan will last. Among the things they will look at are your credit history and whether you have had stable employment for the last two years. This means that your mortgage payments cannot be higher than 28 percent of your income and your total credit payments (for credit cards or other loans, including your mortgage) cannot be higher than 36 percent.
Many loans give you three to five years during which you pay a low fixed interest rate, and then the rate begins to fluctuate with the market.