Fixed-Rate Mortgage
A fixed-rate mortgage is a home loan in which the interest rate remains the same for the entire life of the loan, providing consistent and predictable monthly payments.
The most common terms are 30-year and 15-year fixed. A 30-year term offers lower monthly payments, while a 15-year term builds equity faster and costs significantly less in total interest over the life of the loan. Read our guide on 30-year vs. 15-year mortgages.
A fixed-rate mortgage does not mean your total monthly payment will never change. While the principal and interest portion stays constant, your escrow amount for taxes and insurance may adjust annually based on changes in those costs.
Why This Matters: A fixed-rate mortgage gives you stability in an unpredictable market. Knowing your principal and interest payment will never change makes long-term budgeting easier and eliminates the risk of rate adjustments.
Common question
Will my fixed-rate payment ever change?
Your principal and interest stay the same. Your total payment can change if property taxes or insurance (collected in escrow) go up or down.
What is the difference between a 15-year and 30-year fixed?
A 15-year term has higher monthly payments but builds equity faster and costs much less in total interest. A 30-year term has lower monthly payments but a longer payoff and more interest over time.
Related Topics
Related Mortgage Terms
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