Question

Why do most home buyers prefer a fixed-rate mortgage? Fixed-rate mortgages always provide the lowest possible interest rates. Fixed-rate mortgages allow early payment. Fixed-rate mortgages provide security against increased costs. Fixed-rate mortgages usually get added tax breaks from both state and local governments.

Answer 1

"Fixed-rate mortgages provide security against increased costs." Of course there is the possibility with a fixed-rate mortgage that costs could decrease, meaning you would be paying more than needed, but this is a risk many people are willing to take.