Fixed-Rate Mortgage

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Fixed-Rate Mortgage

A mortgage on real estate with an interest rate that does not change over the life of the loan. As a result, payments on a fixed-rate mortgage do not change. This carries the least risk for the borrower, but it can make it more difficult to qualify for a mortgage in the first place. See also: Adjustable-rate mortgage.

Fixed-rate mortgage.

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 mortgage 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.

fixed-rate mortgage

See fixed-rate loan.

Fixed-Rate Mortgage (FRM)

A mortgage on which the interest rate and the monthly mortgage payment remain unchanged throughout the life of the mortgage.

References in periodicals archive ?
For SSC units at 75% LTV, highlights from the refreshed portfolio switch product range include a two-year fixed rate mortgage at 3.55% with a 0.50% product fee and a five-year fixed rate mortgage at 3.80% with a nil product fee.
The average interest rate on a new fixed rate mortgage fell a further 0.591 over the past 12 months, whilst there was no change in the standard variable rate over the same period.
M2 EQUITYBITES-October 9, 2015-Market leading fixed rate mortgage launched by Tesco Bank
Effective from 8 October 2015, the building society is making reductions on a number of two, three, five and ten year deals, with rates for those with a 10% deposit starting at 2.79% for a two year fixed rate mortgage and 3.54% for a five year fixed rate mortgage and both products come with a GBP999 fee.
The mutual, which has its roots in Huddersfield, was named Best Longer Term Fixed Rate Mortgage Provider and Best Building Society Savings Provider.
* $15.3 million fixed rate mortgage to purchase a multi family housing property with 296 units in Meriden, Conn.
Figures from financial information group Moneyfacts show the average cost of a two-year fixed rate mortgage has dropped to 4.5%, down from 4.58% in March, while five-year fixed rate loans now average 5.62%, compared with 5.66% two months earlier.
Barclays Fixed Rate Mortgage will give homebuyers the added security of knowing how much their monthly repayments will be during the fixed rate period, enabling them to budget and plan ahead.
The press release said that, as part of the introduction of Barclays Fixed Rate Mortgage, potential homeowners can expect a full refund for valuation charges, processing and application fees will be waived too.
Interest rates on its existing fixed rate mortgage range were also reduced for the fifth time this year, with the group cutting them by up to 0.36 per cent, while it is also offering a range of fee-free, five-year fixed rate loans for people remortgaging.
But the cost of a three-year deal has continued to rise since the summer to 5.6%, while a five-year fixed rate mortgage currently costs 6.15% on average.

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