Dictionary of Real Estate Terms: fixed-rate mortgage
fixed-rate mortgage
a loan secured by real property featuring an interest rate that is constant for the term of the loan. Contrast with Adjustable-Rate Mortgage.
Example: A fixed-rate mortgage is originated with an interest rate of 6% for a term of 30 years. The rate will remain at 6% until the loan is retired or the due-on-sale clause is exercised at resale of the property.
