Definition
A mortgage whose interest rate remains constant for the entire loan term.
Example
A 30-year fixed rate mortgage keeps principal and interest identical for 360 payments.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Fixed-Rate Mortgage mean in real estate?
A mortgage whose interest rate remains constant for the entire loan term.
How is Fixed-Rate Mortgage used in practice?
A 30-year fixed rate mortgage keeps principal and interest identical for 360 payments.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.