Reviewed by the Editorial Team · Updated July 10, 2026 · 6 min read
A fixed-rate mortgage locks your interest rate — and your principal-and-interest payment — for the entire loan term. It's the default American mortgage, used by roughly 90% of buyers, available in 30-, 20-, 15- and 10-year terms.
Key takeaways
A fixed-rate mortgage locks in one interest rate and one monthly payment for the entire loan term, whether 10 or 30 years.
The starting rate runs higher than a typical adjustable-rate loan's teaser rate, and it won't drop automatically if market rates fall.
It suits buyers who plan to stay long-term and want a payment that never changes, easing year-to-year budgeting.
About nine in ten American buyers choose fixed over adjustable, making it the default benchmark other loans get compared against.
Rate type
Fixed for the full term
Common terms
30, 20, 15 or 10 years
Share of buyers
~90% choose fixed over adjustable
Best for
Buyers who want payment certainty
Today's 30-year fixed rate6.49%avg · Freddie Mac PMMS · as of Jul 9, 2026
Principal & interest only, 30-year term at 6.49%. Taxes, insurance and any mortgage insurance are extra. See today's rates →
How a fixed-rate mortgage works
Your rate is set at closing based on your term, credit and any points paid, then it never moves again. Fixed rates are available on a conventional loan as well as FHA, VA and USDA financing.
30-year: lowest payment, highest rate, most total interest
20-year: a middle ground, less commonly offered
15-year: higher payment, lower rate, far less total interest
10-year: fastest payoff, usually chosen on a refinance
30- vs. 20- vs. 15-year fixed, qualitatively
Term
Monthly payment
Rate
Total interest paid
30-year
Lowest
Highest of the three
Most
20-year
Middle
Middle
Middle
15-year
Highest
Lowest of the three
Least
The trade-off is consistent across terms: a shorter one raises the monthly payment but cuts both the rate and the lifetime interest bill substantially.
The price of certainty
A fixed rate isn't free. It typically starts higher than an adjustable-rate mortgage's introductory rate, since the lender is pricing in decades of rate risk instead of just a handful of years.
Term: shorter terms price lower
Credit score: higher scores get better pricing
Discount points: paid upfront to buy the rate down
Loan type: conventional, FHA and VA price differently
THE TRADE-OFF
You pay a premium over an ARM's intro rate for certainty. If rates fall later, a fixed rate doesn't lock you out of a lower one — you simply refinance to get it.
Who a fixed-rate mortgage fits
Fixed works for buyers who value predictability over squeezing out the lowest possible starting rate.
Plans to stay in the home long-term
Wants payment certainty for budgeting, regardless of rate moves
Buying when rates are already relatively low or average
Prefers an inflation hedge — the payment stays flat while wages rise
An adjustable-rate mortgage can undercut a fixed rate's intro price for buyers who won't hold the loan past the first adjustment — but most buyers value not having to bet on that timeline.
Fixed-Rate Mortgages: pros and cons
Pros
Payment never changes for the loan term
Simple, predictable long-term budgeting
Protection if market rates rise
Easy to compare across lenders
Available in 10-, 15-, 20- and 30-year terms
Cons
Starting rate higher than an intro ARM rate
No automatic benefit if rates fall later
Slower equity build on a 30-year term
Refinancing to a lower rate costs closing fees
Costly if you sell or move within a few years
Requirements at a glance
Credit score and down payment requirements set by the underlying loan type (conventional, FHA, VA, USDA)
A term choice — 30, 20, 15 or 10 years — made at application
Rate locked at closing, unaffected by future market moves
Escrowed taxes and insurance that can still shift the total payment
Discount points, optional, to buy the rate down further
A fixed-rate mortgage locks your interest rate and principal-and-interest payment for the entire loan term — 30, 20, 15 or 10 years.
The rate never changes regardless of what happens in the broader market, though your total payment can still shift with property taxes and insurance.
Is a fixed or adjustable rate mortgage better?
It depends on your timeline. A fixed rate wins for buyers staying long-term who want payment certainty; an adjustable-rate mortgage can offer a lower intro rate for buyers who'll sell or refinance within 5-10 years. Neither is universally better.
What is the best fixed mortgage term?
For most buyers, the 30-year term wins on flexibility — it keeps the required payment lowest, and you can always pay extra toward principal. A 15-year term suits buyers who can comfortably handle the higher payment and want far less total interest.
How much is a $400,000 mortgage payment for 30 years?
It depends on the rate you lock in, since that's the biggest driver of the payment. html">mortgage calculator for an exact number.
Can a 70 year old woman get a 30-year mortgage?
Yes. The Equal Credit Opportunity Act prohibits lenders from denying a mortgage based on age. Approval depends on income — including retirement, Social Security, or investment income — credit score, and debt-to-income ratio, not life expectancy or age.
Can you refinance a fixed-rate mortgage?
Yes, at any time, with no prepayment penalty on most loans. Common reasons include lowering the rate, shortening or lengthening the term, or cashing out equity — but refinancing means new closing costs and restarts your amortization clock unless you choose a shorter recast term.
This guide is general information, not a lending decision. Program rules and dollar limits change — verify current figures with a licensed lender and confirm licensing at NMLS Consumer Access. See all loan types.
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