A fixed-rate mortgage originator is adversely affected by ________ interest rates while the borrower is adversely affected by ________ interest rates.

Question

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A fixed-rate mortgage has a fixed interest rate for the entire duration of the loan. This means that if interest rates in the market increase, the mortgage originator will be adversely affected because they will not be able to charge higher interest rates to new borrowers. On the other hand, the borrower will be adversely affected by decreasing interest rates because they will not be able to take advantage of lower interest rates in the market.

A Fixed-Rate Mortgage Originator Is Adversely Affected by ________ Interest