Fixed Rate Mortgage

Definition

A mortgage where the interest rate never changes, providing the financial equivalent of a security blanket. Boring, but beautifully predictable.

Example Usage

We locked in a fixed rate at 4.5%, knowing our payment would never increase due to rate changes.

Origin

Straightforward English: 'fixed' rate that remains constant

Fun Fact

Fixed-rate mortgages became the standard after the Great Depression made borrowers wary of payment surprises

Source: Federal Housing Administration (FHA) standards

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