A fixed-rate mortgage is a home loan with an interest rate that remains unchanged throughout the term of the loan, resulting in payments that stay the same. Fixed-rate mortgages most commonly have terms of 30 or 15 years, though some lenders also offer 40-year, 25-year, 20-year, and 10-year fixed-rate mortgages.
Fixed-rate mortgages are favored by borrowers who seek the security of consistent payments, and who wish to avoid the volatility of the changing interest rates of adjustable rate mortgages, which could result in higher payments.
