Fixed-Rate Mortgages

A fixed-rate mortgage is one of the most common home loan options. With this type of mortgage, the interest rate remains the same throughout the loan term, which means your monthly principal and interest payment stays consistent.

Fixed-rate mortgages are often available in different terms, such as 10, 15, 20, or 30 years, depending on the lender and loan program. Because the loan is amortized, each scheduled payment helps pay down the balance over time until the loan is fully repaid, as long as payments are made according to the loan terms.

Even with a fixed-rate mortgage, your total monthly housing payment may change. If your payment includes an escrow or impound account, your lender may collect money each month for property taxes, homeowners insurance, and, when applicable, mortgage insurance. If taxes or insurance costs change, your total monthly payment may be adjusted.

Why Buyers Choose Fixed-Rate Mortgages

Fixed-rate mortgages may be a good option for borrowers who want predictable principal and interest payments, plan to stay in the home for several years, or prefer long-term stability over potential rate changes.

Things to Consider

A fixed-rate mortgage may offer stability, but the interest rate may be higher at the beginning than some adjustable-rate options. The right choice depends on your financial situation, timeline, loan type, and comfort level with payment changes.