Investor Glossary-fixed-rate mortgageInvestor Glossary-fixed-rate mortgageInvestor Glossary-fixed-rate mortgageInvestor Glossary-fixed-rate mortgageInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fixed-rate Mortgage

The HTML to link to this page

A fixed-rate mortgage, or FRM, has a fixed interest rate over the duration of the loan. In contrast, the mortgage with a changing interest rate is called an adjustable-rate mortgage, or ARM. The ARM will generally have a lower interest rate than a similar fixed-rate mortgage because the fixed-rate mortgage lacks interest rate risk. The term fixed-rate mortgage is often confused with the term conventional mortgage. Unlike a conventional mortgage, the fixed-rate mortgage does not have to be fully amortizing though this is usually the case. A fixed rate mortgage can even be a balloon loan. Both the terms fixed-rate mortgage and conventional mortgage are also further confused with the term conforming mortgage. The fixed-rate mortgage can be but is not necessarily conforming.

Rate this fixed-rate mortgage definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: covered put, risk management, average price per share, deferred tax, dividends payable, retained earnings, 144a, 1031 exchange, diluted share, reverse mortgage, class C shares, inflation, Zero Cost Collar, FICO score, stock split, ex-dividend, quality assurance, in escrow, limit order, phantom income, annual return, 1035 exchange, APR, irrevocable trust, option premium, deferred revenue, VIX, Key Rate Duration, 401a, real GDP, EBITDA, LIBOR, margin rate, current ratio, stock market close, cancelled check, ex-dividend date, balance sheet, liquidity ratio, required rate of return, FTSE, labor relations, wholly-owned subsidiary, implied volatility, per diem, command economy, debt service coverage, open position, minority interest

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use