Home Buying

What Is a Fixed-Rate Mortgage?

A fixed-rate mortgage is a home loan whose interest rate stays the same for the entire term, so the principal-and-interest portion of the monthly payment never changes. Common terms in the United States are 15 and 30 years.

Fixed-Rate vs. Adjustable-Rate

With a fixed-rate mortgage, the rate is locked for the life of the loan. With an adjustable-rate mortgage (ARM), the rate is fixed only for an initial period and then adjusts periodically. The total monthly payment on a fixed loan can still change if property tax or insurance collected through escrow changes.

15-Year vs. 30-Year

A shorter term usually carries higher monthly payments and lower total interest; a longer term has lower payments and higher total interest.

🧮 Calculate It Yourself

Put Fixed-Rate Mortgage into practice with these free calculators — no sign-up, nothing stored.

🏠 Mortgage Calculator Estimate your monthly mortgage payment including taxes, insurance, and PMI. Calculate → 📅 Amortization Schedule Calculator See your full year-by-year loan breakdown and what an extra payment saves. Calculate →

🔗 Related Terms

More Home Buying Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.