Fixed-Rate Mortgage
A mortgage where the interest rate remains constant for the life of the loan, resulting in predictable monthly payments. 30-year and 15-year fixed-rate mortgages are the most common in the US. Offers stability and protection against rising interest rates.
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Browse all defined terms by category.
- Mortgage
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
- Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a market index after an initial fixed-rate period. ARMs typically have lower initial rates than fixed-rate mortgages. Rate adjustments can cause monthly payments to increase significantly.
Frequently Asked Questions About Fixed-Rate Mortgage
What does Fixed-Rate Mortgage mean?
A mortgage where the interest rate remains constant for the life of the loan, resulting in predictable monthly payments. 30-year and 15-year fixed-rate mortgages are the most common in the US. Offers stability and protection against rising interest rates.
Is Fixed-Rate Mortgage important for my FICO® score?
Understanding Fixed-Rate Mortgage helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.