Fixed-rate mortgage
A mortgage whose interest rate — and therefore principal-and-interest payment — never changes over the life of the loan.
What does fixed-rate mortgage mean?
A fixed-rate mortgage locks your interest rate, and therefore your principal-and-interest payment, for the entire term — most often 30 or 15 years. It trades the lower starting rate of an ARM for certainty: nothing but taxes and insurance can move your payment. That predictability makes it the default choice for buyers who plan to stay put and want to budget without surprises.
Frequently asked
Is a fixed-rate mortgage better than an ARM?
A fixed rate is better if you will keep the loan for years and want a payment that never changes; an ARM can win if you will sell or refinance before its fixed period ends and want a lower starting rate. It is a trade of certainty for a lower initial cost.
Should I choose a 15- or 30-year fixed mortgage?
A 15-year loan carries a higher monthly payment but a lower rate and far less total interest; a 30-year keeps payments low and flexible.
Pick 15 if the higher payment fits comfortably, 30 if you value breathing room or want to invest the difference.
Put it to use
Mortgage Calculator
Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.
Adjustable-Rate Mortgage (ARM) Calculator
Project payments through the fixed period and the rate adjustments that follow on an ARM.
Amortization Calculator
Generate a complete amortization schedule for any fixed-rate loan, every payment split into principal and interest.
Related terms
All glossary terms