A Fixed Rate Mortgage (FRM) offers predictable, fixed monthly payments and protection from rising interest rates because the rate and the monthly payments remain fixed for the life of the loan. Terms are generally 20 or 30 years, but some lenders offer 10, 20 or even 40 years. Typically, the shorter the term, the lower the interest rate, but the higher the monthly payments. However, because the loan is paid off quicker, savings on interest over the life of the loan can be substantial. The loan is fully paid off at the end of a chosen term.
