FIX RATE MORTGAGES                             

A fixed-rate mortgage (FRM),  is a fully amortizing*  mortgage loan where the interest rate remains the same through the term of the loan, as opposed to loans where the interest rate may adjust , Variable-rate mortgage. As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.

The benefit of a fixed-rate mortgage is that the homeowner locking in their interest rate for the term** of their mortgage so they know exactly how much principal and interest they will be paying on the mortgage during the term.

*amortizing loan is a loan where the principal of the loan is paid down over the life of the loan (that is, amortized) according to an amortization schedule, typically through equal payments.

**Term of the mortgage:  The mortgage term is the length of time that the mortgage agreement at your agreed interest rate is in effect.