Fixed Rate Mortgages
Fixed rate mortgages maintain a constant rate of interest that lasts throughout the lifetime of the mortgage loan.
Unlike adjustable rate mortgage loans, fixed rate mortgage loans are not tied to any index. Interest rates for fixed rate mortgage loans are pre-determined, usually in increments of 1/4 or 1/8 percent.
Additionally, the lifetime for fixed rate mortgage loans is generally 15 or 30 years. Typically, fixed rate mortgage loans are more expensive than adjustable rate mortgage loans, simply because fixed rate loans regularly have higher interest rates.