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A graduate of a master of business administration degree in accounting from New York University, Charles Bradford is a former managing director at Goldmann Sachs. Currently living in Larchmont, New York, Charles Bradford has successfully managed and directed mortgage and bond financing operations for years.
A loan with a fixed interest rate, given by the bank or a mortgage lender to help finance the purchase of a house, is referred to as a fixed-rate mortgage. The specified number of years to complete the payment of a loan is known as the mortgage term. Different banks have different mortgage terms available, but the most common are 15 and 30 years for a fixed-rate mortgage.
Fixed-rate mortgages with a 30-year amortization ensure that the majority of the payment in the early life of the loan is channelled towards payment of interest. However, the latter part of the payment focuses more on the principal. A 15-year payment term requires a higher monthly payment with a lower interest rate.
In general, fixed-rate mortgages are not defined by associated mortgage margins, caps, or indexes due to their fixed interest rates.
