Fixed-Rate, Offset, and Discount Mortgages
Fixed-rate mortgage mechanics, loan-term tradeoffs, permanent discount points, and savings-linked offset structures.
Fixed-rate mortgage terms, loan-term comparisons, offset structures, discount points, and temporary payment buydowns.
Fixed-rate, discount, and buydown structures change mortgage payment timing, upfront cost, interest exposure, or access to cash. The labels can sound similar even when their legal and economic effects differ.
Use Fixed-Rate, Offset, and Discount Mortgages to compare fixed-rate terms, 15-year and 30-year amortization, permanent points, and deposit offsets. Use Mortgage Buydowns for temporary subsidy mechanics and 2-1 or 3-2-1 schedules.
| Structure | Primary effect | Main document check |
|---|---|---|
| Fixed-rate mortgage | Keeps the note rate unchanged | Term, amortization, payment, and prepayment provisions |
| Permanent buydown | Exchanges upfront points for a lower note rate | Rate-and-cost options and break-even period |
| Temporary buydown | Subsidizes an opening payment period | Note rate, written agreement, funding, and later payments |
| Offset mortgage | Calculates interest on mortgage less eligible deposits | Linked-account rules, fees, access, and net-balance method |
Compare the note rate, APR, points, lender credits, cash to close, projected payments, mortgage insurance, and expected holding period. A low opening payment does not by itself establish low total cost or long-term affordability.
Mortgage content is educational and does not provide rate forecasts or individualized borrowing, refinancing, legal, tax, or investment advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Fixed-rate mortgage mechanics, loan-term tradeoffs, permanent discount points, and savings-linked offset structures.
Temporary mortgage payment subsidies, permanent rate buydowns, and the mechanics of 2-1 and 3-2-1 schedules.