MORTGAGE GLOSSARY
What Is a Fixed-Rate Mortgage?
The short definition
A fixed-rate mortgage keeps the same interest rate for the entire loan term, usually 15 or 30 years. Your principal and interest payment stays the same every month for the life of the loan.
Why buyers choose it
Predictability. Your payment won't change because of market rate shifts, which makes long-term budgeting simpler — even if property taxes or insurance (paid through escrow) can still shift the total payment over time.
How it compares
The main alternative is an adjustable-rate mortgage, which can start lower but change over time. Most buyers in the U.S. choose fixed-rate loans.
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