Definition of Fixed Rate Mortgage:
Fixed Rate Mortgages in Orange County, California:
A fixed rate loan is a loan with a set interest rate throughout the term of the entire loan regardless of whether the Federal Reserve Board raises the prime interest rate, or other market forces. The most common mortgage is known as a 30-year fixed rate loan although 15-year fixed loans are popular for Orange County borrowers because they always have a lower interest rate because the lender is getting their loan proceeds back quicker. The majority of FHA loans are fixed rate mortgages. The other main type of mortgage is an adjustable rate mortgage (ARM), which has a variable interest rate.