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 ?
The 30-year fixed-rate mortgage fell 5 basis points week-over-week to 3.47 percent, erasing last week's increase.
A $15.68 million fixed-rate mortgage for refinancing a 66,500 square-foot multifamily property with 79 units on Washington Street in Hoboken, N.J.
First Direct's decision makes it the latest UK lender to pull back its fixed-rate mortgages from the market.
The shift has been driven by a sharp increase in the cost of fixed-rate mortgages seen during June and July after wholesale funding costs rose.
Moneyfacts said lenders were continuing to fail to pass on falls in swap rates, upon which fixed-rate mortgages are based.
The decision to refinance with an adjustable-or with a fixed-rate mortgage involves many of the same factors considered in the creation of the original home-purchase mortgage.
30-year fixed-rate mortgage (FRM) averaged 3.52 percent with an average 0.5 point for the week ending October 20, 2016, up from last week when they averaged 3.47 percent.
Andrew Hagger, independent financial expert from website Moneycomms.co.uk, says: "Whether you decide on a variable or fixed-rate mortgage should come down to your own financial situation.
THE Yorkshire Building Society has announced its lowest-ever fixed-rate mortgage deal, which is also the lowest 60% loan-to-value (LTV) rate on the market.
A two-year fixed-rate mortgage at 70% LTV is available at 2.74%.
* A $14.25 million fixed-rate mortgage refinance for an 82-unit multi-family property on Rutgers Street in Manhattan.
Halifax said the highest interest rate it had ever charged on a fixed-rate mortgage was 13.85% in 1990, while the lowest was just 1.99% in February 2007.

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