Define Fixed Rate Mortgage

Another key characteristic of the fixed-rate mortgage is that monthly principal and interest mortgage payments remain constant throughout the life of the loan, to the very last month when the loan is finally paid off. Imagine if your monthly payment was $1,000 on a 30-year fixed-rate mortgage.

Fixed Rate Mortgage Law and Legal Definition. A Fixed Rate Mortgage refers to a mortgage with an interest rate that will remain same for the complete term of the mortgage irrespective of any fluctuating market conditions. The advantage of the fixed rate mortgage is that the payment is the same.

Fixed-Rate Mortgage Pros and Cons. Fixed-rate mortgages are most commonly available with 30-year mortgages and 15-year mortgages. With a 15-year, fixed-rate mortgage you’ll usually get a lower interest rate and pay much less interest over the life of your loan, but you’ll have a significantly higher monthly payment than with a 30-year mortgage.

As mentioned above, a fixed rate mortgage is a well defined and easy to understand method of financing a home. Buyers who want to know what their payments will be during the course of the loan should seriously consider using this type of financing.

Mortgage definition is – a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms. How to use mortgage in a sentence.. – fixed rate mortgage: a mortgage having an interest rate that stays the same

While the fixed-rate mortgage is the most popular mortgage option, it is also generally the most expensive in terms of what you must pay up front. With an adjustable-rate mortgage, the bank makes more money when interest rates go up, but with a fixed-rate mortgage, the bank makes a 30-year bet.

What's the difference between fixed or adjustable mortgage rates and how do they affect you?. What is Your mortgage interest rate?. Whether or not the rate remains the same throughout your loan term depends on if you.

Texas 30 year fixed mortgage rates 30-year fixed mortgage rate s Fall After Brexit; Current Rate is 3.34%, According to Zillow Mortgage Rate Ticker – June 28, 2016 14:05 ET | Source: Zillow Group, Inc. SEATTLE, June 28, 2016 (GLOBE NEWSWIRE) – The 30-year fixed mortgage rate on Zillow® Mortgages is currently 3.34 percent, down seven basis points.