A mortgage where the interest rate stays the same for the entire life of the loan. Your principal-and-interest payment never changes.
A fixed-rate mortgage locks in your interest rate for the full term of the loan, whether that's 15, 20, or 30 years. The payment amount you sign up for at closing is the payment you'll make every month until the loan is paid off. Predictable, simple, and the most popular choice in America by far.
The trade-off compared to an adjustable-rate mortgage (ARM) is that fixed rates usually start slightly higher. You're paying a small premium for the certainty of knowing your payment will never go up. For most buyers — especially first-time buyers and anyone planning to stay in the home for a while — that certainty is worth it.
Example
A 30-year fixed at 6.5% on a $320,000 loan gives you a $2,022 P&I payment every month for 30 years — never higher, never lower (taxes and insurance can change separately).
Also known as
fixed mortgage, FRM, 30-year fixed, 15-year fixed