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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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76% - Very Often

Fixed Rate Mortgage


Synonyms:fixed mortgage, fixed mortgage rate, fixed rate, fixed rate closed mortgage, fixed rate term, fixed term mortgage, fixed-rate mortgage
Acronyms &
abbreviations:
FRM
Filed Under: mortgages
Tags: mortgage, mortgage rates, rates
 

Definition of fixed rate mortgage (FRM)

fixed rate mortgage (FRM)
1. A mortgage in which the interest rate and payments remain the same for the life of the loan. The interest rate and payment amounts are established at the time or of origination.

Related Terms and Acronyms:

  • alternative mortgage   A home loan that is not a standard fixed-rate mortgage.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Mortgage Broker (MB)   One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • open mortgage   A mortgage that can be paid off prior to maturity without penalty.
  • prime lending rate (PLR)   The rate of interest charged on loans by chartered banks to their most creditworthy customers.
      ➥  Bank of Canada's prime (best) lending rate.
  • roll over mortgage   A type of loan where the interest rate is set for a specific term. At the end of this term, the mortgage is said to "roll-over" and the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
  • step-rate mortgage   A fixed-rate home loan on which payments are lower at the beginning, typically for two years, and which then rise.
  • variable rate mortgage (VRM)   Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
      ➥  A type of mortgage loan offered by brokers and lenders.

More Related Terms and Acronyms

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