Dictionary of Real Estate Terms: fixed payment mortgage
fixed payment mortgage
a loan secured by real property that features a periodic payment of interest and principal that is constant over the term of the loan. All fixed payment mortgages are fixed-rate mortgages but some fixed rate mortgages may have variable payments, such as a Graduated-Payment Mortgage.
Example: A fixed payment mortgage calls for 360 monthly payments of interest and principal of $1,000. Added to that amount is a payment to an escrow account for taxes and insurance, which may change from year to year.
