In real estate finance, a Fixed Rate Loan is a mortgage loan in which the interest rate remains constant for the entire term of the loan. Because the rate does not change, the borrower’s principal and interest payments stay the same throughout the life of the mortgage.
Fixed rate loans provide predictability and stability, making them popular with borrowers who want consistent monthly payments and protection from rising interest rates. These loans are commonly offered with various term lengths, such as 15 or 30 years.
