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If you are applying for a new home loan, you need to decide if you want fixed rates or adjustable rates. As the name implies, fixed rates do not change over time. If you get a new home loan at a time when interest rates are historically low, you can enjoy that same rate for the entire term of your loan – whether you have a 15, 20, 30, or 40 year new home loan. If you are getting a debt consolidation loan, a second mortgage loan, a home equity loan, or a home improvement loan, you may also qualify for fixed rates. There are many advantages to fixed rates in a new home loan. With fixed rate mortgages, you can enjoy payments that will always stay the same. If you have a longer term mortgage, fixed rates can protect you from inflation. However, with easy mortgage refinancing today, fixed rates do not have to hem you in. You can always get mortgage refinancing to get a new rate. Fixed rates in mortgages also make sense for some home buyers because of simple economics. With adjustable rates, your monthly payments will go up during economic downturns, when your own job situations may be precarious. Fixed rates can protect you from this potential problem. There are also some drawbacks to fixed rates that you should be aware of. The first is that many people enjoy better credit ratings as they get older and enjoy greater success in their chosen careers. Fixed rate mortgages, however, keep your rate frozen at your initial rate – which may have been affected by a poorer credit rating. Plus, mortgage refinancing can cost money – there are fees that must be paid in order to get out of an existing mortgage. If you plan on refinancing, fixed rates may cost you extra. To decide whether a fixed rate mortgage is for you, you may need to speak with a financial professional about your current financial situation and long-term goals. You may also want to consider whether you will be living in your new home for a while – fixed rates tend to be better for people who are buying a home for the long term. Online mortgage calculators can also be a good way to see the difference between fixed rates and other types of financing.