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Real Estate vocabulary · Mortgages & Financing

Fixed-rate mortgage

Meaning in real estate, with examples

nounCommon term

In real estate, fixed-rate mortgage means: A home loan whose interest rate stays the same for an agreed period or for the whole loan, so the monthly payment does not change.

In Turkish: sabit faizli konut kredisi

How it is used

In the US a 30-year fixed-rate mortgage is the standard product. In the UK fixed rates usually last two to five years, after which the loan moves to the lender's variable rate unless the borrower remortgages.

Example sentences

  1. We chose a five-year fixed-rate mortgage so our payments stay predictable.

  2. Most first-time buyers here take a 30-year fixed-rate mortgage.

Common collocations

  • 30-year fixed-rate mortgage
  • two-year fixed
  • fixed-rate period
  • lock in a fixed rate
  • adjustable-rate mortgageA home loan whose interest rate can go up or down over time in line with a market index, so the monthly payment may change.
  • interest rateThe percentage a lender charges for borrowing money, which decides how much a mortgage costs on top of the amount borrowed.
  • mortgageA long-term loan used to buy a property, in which the property itself serves as security for the lender until the loan is paid back.
  • refinanceTo replace an existing mortgage with a new one, usually to get a lower interest rate, change the term or borrow extra money against the property.

More terms: Mortgages & Financing

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