What a Fixed Interest Rate Means
The rate you lock at closing stays the same until the loan is paid off or refinanced. Market rates can go up or down, but your rate won't.
PREDICTABLE PAYMENTS
Fixed-Rate Mortgages
A fixed-rate mortgage keeps the same interest rate for the whole loan, so your principal and interest payment doesn't change.
Short Answer: Same Rate, Same Payment
With a fixed-rate mortgage, the interest rate is locked for the full term, often 15 or 30 years. Your principal and interest payment stays the same. Property taxes and insurance can still change, so your total monthly payment may move a little over time.
15-Year vs 30-Year
For the same loan amount, a longer term such as 30 years will generally have a lower monthly principal and interest payment than a shorter term, but more interest may be paid over the life of the loan. A shorter term such as 15 years generally has a higher monthly payment but can substantially reduce total interest. Available rates and terms vary.
Interest vs Principal Over Time (Amortization)
Amortization means paying the loan down on a fixed schedule. Early payments go mostly to interest. Over time, more of each payment goes to principal (the amount you borrowed). Extra payments toward principal can shorten the loan and cut total interest.
Fixed-Rate vs Adjustable-Rate (ARM)
An adjustable-rate mortgage (ARM) usually starts with a fixed rate for a few years, then can change based on the market. A fixed-rate loan trades that possible early savings for long-term certainty.
When a Fixed-Rate Mortgage May Make Sense
A fixed rate may suit you if:
- You plan to keep the property for many years
- You want a predictable budget
- You'd rather not take the risk of rates rising later
We don't publish rates here because they change daily. Contact us for a current quote.
Fixed-Rate Mortgage Questions
View All FAQsYour principal and interest payment stays the same. If taxes and insurance are paid through escrow, those parts can change.
It depends on your budget, cash flow and goals. A longer term generally reduces the monthly principal and interest payment, while a shorter term can reduce total interest. Our calculators can help you compare scenarios.
Some Foreign National programs offer fixed-rate options, depending on the lender and program.
Many loans allow extra principal payments. Some investment and non-QM loans have a prepayment penalty, so check your loan terms.
Related Pages
Requirements vary by lender and loan program. This page is general information, not a loan offer or approval.
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