Talk:Fixed-rate mortgage

no vfd for ARM? --Rj 03:29, Mar 22, 2004 (UTC)

Which country are we in??

"Fixed-rate mortgage interest may be compounded differently in other countries, such as in Canada, where it is compounded every 6 months." I guess its USA?  — Preceding unsigned comment added by 91.135.14.157 (talk) 14:26, 24 April 2015 (UTC) 

Redirect instead of a detailed description?

All other types of mortgage have their own page. Fixed Rate Mortgage should have it's own page as well. IMO... CodeCarpenter 14:12, 23 January 2007 (UTC)

After a discussion with Theresa Knott, who placed the redirect initially, I decided to be bold and create the page myself. Rip it apart as needed... CodeCarpenter 19:01, 23 January 2007 (UTC)

Index? What index?

Fixed rate mortgages don't have an index or margin -- that's why they're fixed.

Rename move?

This page refers to US style fixed rate mortgages only. Fixed rate loans in UK and Europe work differently. For example in the UK fixed rates typically only apply for 2,3,or 5 years of the mortgage before reverting to a tracker or standard variable rate. The differences are significant. I propose either renaming this page Fixed rate mortgage (US) or rewriting the page to incorporate non-US information. simonthebold 16:33, 25 July 2007 (UTC)

Agree - be bold, simonthebold.--Gregalton 16:41, 25 July 2007 (UTC)

Keep it simple

"cyclotomic polynomial", "geometric progression" to derive this, perhaps a link for math wanks. Charles Esson (talk) 03:17, 19 September 2008 (UTC)

i understand you use official definition and calculations. the problem is fixed rate is not really fixed as we know, in reality it variable rate with starting rate of 90%. this fact never mentioned and 90% interest create unequal positions. —Preceding unsigned comment added by 68.208.127.66 (talk) 10:40, 12 October 2010 (UTC)

What Margin?

under terminology we have: "The price of the FRM as calculated by adding Index + Margin = Fully Indexed Rate." but "margin" is never defined. Pwv (talk) 03:58, 20 January 2011 (UTC)

month rate plain wrong!

The sentence divide the quoted yearly nominal percentage rate by 100 and by 12 to obtain the monthly interest rate is not true. If i have 12% annual rate it is not the same as 1% per month. It would lead to (1.01)^12 = 1,126825 => 12,68% annual rate. Correct calculation is (1+r)^(1/12)-1 so unless you cite any resources there is a mistake. — Preceding unsigned comment added by 86.49.81.117 (talk) 12:08, 15 June 2012 (UTC)

This whole article is superceded

This page has a better (I think more accurate too) calculation for fixed rate mortgages with a correctly calculated monthly compound interest rate:

Monthly mortgage payments

I suggest redirecting or at least making the differences clear. — Preceding unsigned comment added by 129.67.93.24 (talk) 16:38, 6 August 2012 (UTC)

Pricing

In the Pricing section, the last paragraph, three key components of fixed-rate loans are listed. I suggest changing item 2 to be more precise and less ambiguous as follows. The ambiguity I'm seeing is that the "amount owed" for any given month could be misconstrued as the amount of the fixed monthly payment.

(2) the principal balance for any month equals the principal balance from the previous month plus interest on that amount, minus the fixed monthly payment; — Preceding unsigned comment added by Thisisdavid (talk • contribs) 21:54, 30 August 2012 (UTC)

The Norwegian page (se well as the Danish and Swedish pages) that redirects here does not describe the same issue as this page

The English article discribes a fixed rate mortgage.

The Norwegian article (as well as several of the other languages) does not describe a fixed rate mortgage (NO:fastrentelån), but one of two ways of stcructuring instalments vs. interest rates on a floating rate loan.

A Norwegian "annuitetslån" most often will have a floating interest rate. However, as long as the interest actually rate remains the same (until the bank changes the interest rate) all installments payable are of an equal amount. Meaning that in the beginning of the total loan period, the installments will consist of relatively larger interest payments and relatively smaller principle amount payments. Near the end of the loan period, the installments will consist of relatively smaller interest payments and relatively larger principal amount paymens. If the interest rate is changed by the lender, the borrower will receive a new payemnt plan, wherein all installments will still be the same amount (however, a bit higher if the interest has increased, a bit lower if the interest has decreased). So; in an "annuitetslån", the installments are the same but the payable interest part and the payable principal part vary throughout the loan. The interest rate itself is still floating, unless the parties have entered into a fixed rate agreement.

The other variant (still a floting rate loan) is a "serielån" (linear loan), where the principal amount payable is the same throughout the loan period. This means that the installments will vary, because the borrower will pay more interest in the beginning of the loan period, because payable interest is calculated on the remaining outstanding principle amount (which will be larger at first and decrease with time).

An additional agreement re. fixed rates may be entered into w/regards to both loan types (annuitet / linear).

I do not have any input as to chages in this article, but the languages link/redirect click should be removed for the Norwegian page (as well as the Swedish and Danish at least - I do not speak any of the other languages and cannot say whether it also applies to those)

194.68.56.33 (talk) 15:02, 29 October 2021 (UTC)