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What Is A Fixed Rate Mortgage?
The term fixed-rate mortgage refers to a home loan that has a fixed interest rate for the entire term of the loan. This means the mortgage carries a constant interest rate from beginning to end. Terms can range anywhere between 10 and 30 years for fixed-rate mortgages, which are popular products for consumers who want to know how much they’ll pay every month.
Fixed Rate Loan Key Takeaways:
- A fixed-rate mortgage is a home loan with a fixed interest rate for the entire term of the loan.
- A Fixed Rate Mortgage will not fluctuate with market conditions.
- Borrowers who want to know exactly what their payment is, and those planning to live on the property for the long term tend to prefer fixed-rate mortgages.
- Most fixed-rate mortgages are amortized loans.
A Fixed Rate Loan might be be right for you:
- This is not an investment home
- You plan to live at the property for several years
- You want to know exactly what your payments will be each month
- You are planning on owning the home for a long time
