A fixed-rate mortgage (FRM), often referred to as a "vanilla wafer" mortgage loan, is a fully amortizing mortgage loan. • where the Mortgage Loan Interest Rates on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float". • As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent. • single payment and the ability to plan a budget based on this fixed cost.
Other forms of mortgage loans include interest only mortgage, graduated payment mortgage, variable rate mortgage (including adjustable-rate mortgages and tracker mortgages). • negative amortization mortgage, and balloon payment mortgage. • Unlike many other loan types, FRM interest payments and loan duration is fixed from beginning to end.
Fixed-rate mortgages are characterized by amount of loan, interest rate, compounding frequency, and duration. • With these values, the monthly repayments can be calculated. • [Source: http://houseinforme.blogspot.in/2015/12/fixed-rate-mortgage-housing-loan-rates.html]
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