Fixed rate mortgage Meaning and Definition
Fixed Rate Mortgage
Pronunciation
Part of Speech
Noun
Definition
A type of mortgage where the interest rate remains the same for a set period of time, often 15 or 30 years, providing predictable monthly payments.
Examples
- They opted for a fixed rate mortgage to avoid rising interest rates.
- A fixed rate mortgage can provide peace of mind for homeowners.
Synonyms
- Fixed Rate Loan
- Stable Rate Mortgage
Antonyms
- AARMs (Adjustable-Rate Mortgage)
- Hello Mortgage
Etymology
A fixed rate mortgage term originated from the concept of providing a steady and predictable interest rate for borrowers, ensuring stable monthly payments.
Usage Notes
When discussing mortgages, it is essential to consider the impact of fixed rate mortgages on interest rates and monthly payments.
Cultural References
- The financial news network highlighted the benefits of fixed rate mortgages for homebuyers.
- The real estate agent recommended fixed rate mortgages for clients looking for stability.
Idiomatic Expressions or Phrases
Phrases that include the term:
- “Lock-in” a fixed rate mortgage
- “Fixed rate” for predictable payments
Related Words or Phrases
Words or phrases closely related in meaning or usage:
- Floating Rate Mortgage
- Hybrid Mortgage
- Mortgage Insurance
Collocations
Common word combinations with the term:
- Fixed rate mortgage payment
- Fixed rate mortgage calculator
- Fixed rate mortgage rates
Frequency of Use
The term “fixed rate mortgage” is commonly used in the real estate and financial industries, particularly during discussions about mortgage options and interest rates.
Common Misspellings
Borrowers should ensure they accurately spell “fixed rate mortgage” when filling out mortgage applications or communicating with lenders.