| A mortgage secured by real property featuring a constant (fixed) interest rate for the term of the loan. The interest rate will not change or adjust. Example: A fixed rate mortgage is originated with an interest of 10% for a term of 30 years; the rate will remain at fixed at 10% per year for the full 30 year term.
Fixed rate loan repayments are amortized over the period of the loan, meaning the borrower pays interest and capital every month, as predetermined.
The loan will be repaid in ful at the end of the term.
Also see Adjustable Rate Loan |
