Real Estate Glossary > F > Fixed Rate Mortgage Definition

A loan with a set interest rate throughout the life of the loan regardless of whether rates go up or down. The most common mortgage is known as a "30-year fixed" which means that the loan is paid over a 30-year period, and the interest rate The cost of borrowing money expressed as a yearly percentage rate. is fixed at the time of the purchase. Most FHA loans and VA loans A special type of loan backed by the government and only available to veterans of the US military and surviving relatives. are fixed rate mortgages. The other main type of mortgage is an adjustable rate mortgage A loan with a fixed interest rate for a specified amount of time and a floating rate for the remainder of the period. (ARM), which has a variable interest rate.