Fixed-rate mortgage can help buyers guard against interest rate risks and avoid the uncertainty of interest expenses caused by future interest rate changes. So in general, the interest rate of fixed-rate mortgage is higher than that of floating-rate mortgage. However, choosing a fixed-rate mortgage loan may not necessarily save money. Under the condition that the market interest rate will not rise too much, it is more economical to choose floating interest rate mortgage than fixed interest rate mortgage. Whether to choose a fixed-rate mortgage requires individuals to have a certain judgment on the market.
The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.