There are a few drawbacks to fixed-rate mortgages, including:
- Higher interest rates: Fixed-rate mortgages typically have higher interest rates than adjustable-rate mortgages (ARMs). This means that you may pay more interest over the life of the loan.
- Less flexibility: With a fixed-rate mortgage, you cannot take advantage of lower interest rates in the future. If interest rates fall, you will not be able to refinance your loan at a lower rate.
Overall, fixed-rate mortgages are a good choice for borrowers who are looking for stability and predictable payments. If you are comfortable with the higher interest rates and less flexibility, then a fixed-rate mortgage may be the right choice for you.
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