Rate option
Fixed-Rate Mortgage
The traditional home loan. Your principal and interest payment never changes for the life of the loan.
- Terms from 10 to 30 years
- Payment never changes
- Pay off early without penalty
A fixed-rate mortgage is the most common loan structure for a reason: your interest rate is locked for the entire term, so your monthly principal and interest payment stays exactly the same from your first payment to your last. Terms usually run from 10 to 30 years, and you can typically pay the loan off early without a penalty.
The loan is fully amortized, meaning each payment is calculated so the balance reaches zero at the end of the term. Early on, more of each payment goes to interest. Over time, more goes to principal.
Why fixed rates are popular
Predictable payments
Your principal and interest never change, which makes budgeting simple for as long as you own the home.
Protection from rising rates
If market rates climb, yours stays put. If they fall, you can refinance.
Your choice of term
A 30-year term keeps payments low. A 15-year term costs more per month but saves a lot of interest.
No surprises
There's no adjustment period, index, or margin to keep track of.
Why your total payment might still change
If your loan has an escrow (impound) account, your lender collects money each month for property taxes, homeowners insurance, and mortgage insurance if you put less than 20% down. When taxes or insurance premiums change, that portion of your payment adjusts, even though your principal and interest never will.
Common questions
Is a 15-year or 30-year fixed better?
It depends on your budget and goals. A 30-year loan has a lower payment and more flexibility. A 15-year loan typically has a lower rate and saves tens of thousands in interest, but the payment is higher. Run both in our mortgage calculator, or ask us to compare them for you.
Can I pay extra toward principal?
Yes. Fixed-rate loans through our lenders don't carry prepayment penalties, so any extra you pay goes straight to principal and shortens the loan.
Ready to explore a fixed rate loan?
Tell us a little about your plans and a local loan originator will compare your options across our lender network. It's free, and there's never any pressure.