Since the early 1930s, the standard residential mortgage instrument used in the United States has been a fixed-rate mortgage (FRM). Although it was not often called an FRM, this instrument had a fixed interest rate, which was established at the beginning of the loan period; a constant or level payment or debt service, consisting of both interest and principal; and a fully amortizing repayment schedule, which included a sinking fund payment. [Source: The Encyclopedia of Housing; Adjustable-Rate Mortgages]
adjustable-rate mortgages
concepts
mortgage finance