A fixed-rate mortgage (FRM), is a fully amortizing mortgage (meaning at the end of the term, there is no balance remaining) loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”. As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.
Fixed Rate Loan Terms
Fixed Rate Mortgages can have different terms. 15 year “fixed” and 30 year “fixed” are the most common. Unlike other Loan Originators, I am able to do odd loan terms like 17 or 23 years. Want a 26 year loan? We can make it happen.