What is a fixed-rate mortgage?

A fixed-rate mortgage is a type of home loan where the interest rate remains constant throughout the entire term of the loan. This means that the monthly mortgage payment also remains the same, offering stability and predictability to borrowers. Regardless of any changes in the broader interest rate market, a fixed-rate mortgage ensures that borrowers can accurately budget for their housing expenses over time. These mortgages typically have terms of 15 or 30 years and are popular among homebuyers who seek certainty and prefer to avoid the potential fluctuations of adjustable-rate mortgages.

This mind map was published on 18 October 2023 and has been viewed 109 times.