Fixed-Rate Mortgage

Definition

A mortgage where the interest rate stays the same for the entire loan term—basically, the financial equivalent of a fixed-price restaurant menu.

Example Usage

We locked in a 4% fixed-rate mortgage for 30 years, so our payment will never change.

Origin

Standard mortgage product that became ubiquitous after the Great Depression housing crisis

Fun Fact

Fixed-rate mortgages are actually less common globally than adjustable-rate mortgages, making them an American-ish quirk

Source: Standard mortgage terminology

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