Real Estate Term of the Day: Fixed-Rate Mortgage
FIXED-RATE MORTGAGE – a loan secured by real property featuring an interest rate that is constant for the entire term of the loan (Barron’s Dictionary of Real Estate Terms)
Contrast to: ADJUSTABLE RATE MORTGAGE (ARM)
When financing a new home, it is key that you work with your lender to ensure you pick the correct loan product that works best for you and your financial situation. As with any type of mortgage it is very important that you understand the implications of the loan 100%. Don’t be afraid to ask your lender as many questions about the loan product as possible.