What is a Fixed Rate? - Definition

What is a Fixed Rate
A mortgage with a fixed rate is a loan where the rate does not adjust at any point during the life of the loan. This loan should not to be confused with certain adjustable products where the rate may be

fixed for an initial period of time. For example, a 2 year fixed rate indicates that rate is only fixed for the first two years of the loan. After the two years the loan can either balloon or adjust.