This is the type of mortgage you are probably think of whenever you hear the term ‘mortgage’. The description is right there in the name: a mortgage with a fixed (or constant) interest rate for the life of the loan. From the time it is written to the time it is paid off, your principal and interest payment will never change. This is the most commonly used mortgage type in the United States largely because of its stability.
Interest rates for Fixed-Rate mortgages are set at the time of the loan’s inception. Principal and interest payments will never increase however payments may increase based on taxes and insurance escrows.
