Fixed-Rate Mortgage

A fixed-rate mortgage is a home loan whose interest rate stays the same for the entire term, so your principal and interest payment never changes month to month.

This predictability is the main appeal. Whether you choose a 30-year or 15-year term, you know exactly what that portion of your payment will be for the life of the loan, which makes budgeting easier and protects you if market rates rise. A shorter term carries higher monthly payments but less total interest.

Note that taxes and insurance held in escrow can still change, so your full payment may shift slightly even when the rate is fixed. Compare terms and payments using the main calculator.

Related terms: Adjustable-Rate Mortgage (ARM), Amortization

 
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