Fixed Rate Mortgage

A mortgage with an interest rate that does not change during the entire term of the loan.

A mortgage whose rate remains constant throughout the life of the mortgage.

A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.

A loan secured by real property featuring an interest rate that is constant for the term of the loan.

A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.

A fixed-rate mortgage is a long-term loan that you use to finance a real estate purchase, typically a home.

Your borrowing costs and monthly payments remain the same for the term of the loan, no matter what happens to market interest rates.

This predetermined expense is one of a fixed-rate loan's most attractive features, since you always know exactly what your mortgage will cost you.

If interest rates rise, a fixed-rate mortgage works in your favor. But if market rates drop, you have to refinance to get a lower rate and reduce your mortgage costs.

Typical terms for a fixed-rate mortage are 15, 20, or 30 years, though you may be able to arrange a different length. With a hybrid mortgage, which begins as a fixed-rate loan and converts to an adjustable rate, the fixed-term portion is often seven or ten years.

A mortgage in which the interest rate and monthly payments of principal and interest remain the same for the life of the loan.