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While a Fixed Interest Rate Mortgage can offer you peace of mind since you know exactly how high your monthly payments will be your month, there are two disadvantages that make some people choose variable mortgages over fixed interest mortgages.  The first is that the initial interest rate charge is much higher because the lender is well aware that they are unable to change it later despite the manner of the housing market.  Second, usually a fixed rate mortgage will have a higher monthly payment initially than a variable mortgage but if you plan to keep your home this averages out quite nicely throughout your payments for you.