Fixed-Rate Mortgage

Definition:

A loan that carries an unchangeable interest rate over its entire term, typically a period of 15-30 years.

Examples:

Most banks are offering fixed-rate mortgages at 5.5%, but the credit unions can usually beat that rate by a half point or so.

One reason for choosing a fixed-rate mortgage is the ability to plan a budget over the life of the loan, without worrying about market fluctuations.