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Mortgage Basics
Why your payment stays the same even when rates move
A lot of people assume that if interest rates go up or down, their monthly mortgage payment automatically changes. That's only true if you have an adjustable-rate loan. Most borrowers have fixed-rate mortgages, which means your payment is locked in from day one and never changes for the life of the loan — regardless of what happens to rates in the market. What does change is what you're paying toward principal versus interest each month. Early in the loan, more of your payment goes to interest. Over time, more goes to principal. But the total amount you pay stays the same. This is actually one of the biggest advantages of a fixed-rate mortgage: predictability. If you'd like to understand your own loan better, I'm happy to walk you through it. Let's chat about how your loan works and whether it still fits your situation.
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