Fixed-Rate Mortgage
A mortgage whose interest rate — and principal-and-interest payment — never changes for the life of the loan.
What does fixed-rate mortgage mean?
A fixed rate trades a slightly higher initial rate for complete certainty: your payment is the same in year one and year thirty. It’s the default choice for buyers who value predictability over the early savings of an ARM.
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Related terms
Fixed-Rate Mortgage — frequently asked
Fixed-rate or adjustable-rate mortgage — which is better?
A fixed rate suits buyers who value a payment that never changes and plan to stay long term. An ARM can win with a lower intro rate if you expect to move or refinance before it adjusts. Certainty versus a cheaper start is the trade.
Can my payment change on a fixed-rate mortgage?
The principal-and-interest portion stays the same for the whole term. Your total monthly bill can still move if property taxes or homeowners insurance held in escrow change, but the loan payment itself is locked.