Real Estate Definitions › Mortgages & Financing

Fixed-Rate Mortgage

Outland and Associates Real EstateJames Outland, Broker AssociateDRE #01314390

What is Fixed-Rate Mortgage?

A fixed-rate mortgage keeps the same interest rate for the entire life of the loan, so the principal-and-interest payment never changes. This makes budgeting predictable even if market rates rise. The most common terms are 30 years and 15 years.

Example: A buyer locks a 30-year fixed-rate loan at 6.5%. Whether market rates later rise or fall, their principal-and-interest payment stays the same for all 30 years.

Important Disclaimer

This definition is provided for general educational purposes only and is not legal, tax, or financial advice. Real estate laws and lending rules change and vary by situation. Before acting, consult a licensed attorney, CPA, lender, or other qualified professional in the State of California regarding your specific circumstances.

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