A home loan in which the interest rate remains unchanged throughout the life of the loan. This results in a constant payment that won’t rise during the life of the mortgage even if interest rates rise. During the early years of a fixed-rate mortgage, most of the monthly payment goes to pay interest on the loan and only a small portion goes to pay down the principal. This situation reverses itself toward the end of the mortgage term. In contrast, an adjustable-rate mortgage has an interest rate that can increase or decrease depending on market interest rates.
Fixed-rate-mortgage Sentence Examples
Balloon loans are a type of fixed rate mortgage.
Not only do you input the basic data for a fixed rate mortgage into a worksheet, you can add in an estimate of annual Mortgage Insurance and property taxes on the home.
If the answer to both questions is yes, a fixed rate mortgage may be best for you.
The fixed rate mortgage loans offered by Chase can be amortized over a thirty year or fifteen year period.
One other option you may want to consider is contacting your lender or other lenders to see if you qualify for a simple refinance into a fixed rate mortgage.