Fixed Rate Mortgage

What is Fixed Rate Mortgage?

fixed-rate mortgage (FRM), often referred to as a “vanilla wafer” mortgage loan, is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”. As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.

Why do you consider it?

  • Prefer regular payments with no surprise
  • Are on limited or fixed income
  • Plan to stay in their homes a long time
  • Are refinancing at a time when interest rates are comparatively low