Definition
A mortgage with an interest rate that remains constant for the entire loan term, providing predictable monthly principal and interest payments. Available in 10, 15, 20, 25, and 30-year terms. The most popular choice for homebuyers, with 30-year fixed loans accounting for over 70% of all mortgages originated.
Related Mortgage Terms
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Interest Rate
The cost of borrowing money, expressed as a percentage of the loan amount charge...
- Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that starts with a fixed period (typically 5, 7...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.