disadvantage of a fixed rate

The main disadvantage of a fixed rate is that you may end up paying more over the long run. A fixed-rate mortgage typically offers a lower rate of interest for a certain amount of time, but after the fixed period has expired you may end up paying more due to the increased interest rates in the market. Furthermore, if you go for a long-term fixed-rate mortgage, you may find yourself losing out on any potential benefits that may occur from decreasing interest rates. Finally, if you want to refinance your mortgage you will have to pay hefty early repayment fees due to the higher interest rate associated with fixed-rate mortgages.