Fixed-Rate Mortgages

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Mortgages at their most basic are used to purchase homes, explains Investopedia. However, complex issues surround the topic of mortgages including the legal ramifications and the amount of documentation required to approve mortgages.

When most people think of mortgages, the first thing that comes to mind is fixed-rate mortgages, states Investopedia. Most borrowers seek fixed-rate mortgages to finance the purchase of a home. At its core, a fixed-rate mortgage is one where the interest rate does not change over the life of the loan. A fixed-interest rate protects borrowers from sudden increases in interest rates that can cause a large rise in monthly mortgage payments.

Other basic mortgage terminology includes adjustable-rate mortgages,

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