Fixed-Rate Mortgages
Everything You Need to Know About Fixed-Rate Mortgages
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage is a home loan where the interest rate stays the same for the entire term—usually 15, 20, or 30 years. That means your monthly principal and interest payments will never go up, no matter what happens to market rates. It’s predictable and simple, which is why it’s the most common type of mortgage in the U.S.
Who Is It Best For?
Fixed-rate loans are great for people who plan to stay in their home for a long time and want a stable monthly payment. If you’re on a set income or just want peace of mind knowing your payment won’t suddenly jump, this is probably the right loan for you.
Who Should Think About It Twice?
If you plan to move or refinance in a few years, a fixed-rate mortgage might not be the best fit. You’ll usually pay a higher interest rate up front compared to adjustable-rate loans. So if you’re buying a “starter home” or expect your income to rise soon, you might consider other options.
Pros and Cons
| Pros | Cons |
|---|---|
| Payment never changes—easy to budget | Usually higher interest rate than adjustable-rate loans |
| Protects you if market rates go up | Less flexible if you move or refinance soon |
| Simpler to understand | You may pay more interest early on |