Fixed Rate Mortgage
Lock in your rate for the life of the loan. Predictable payments. Complete peace of mind.
Why Choose a Fixed Rate Mortgage?
A fixed rate mortgage provides the ultimate in payment stability and long-term financial planning.
Rate Stability
Your fixed rate mortgage interest rate never changes, regardless of market fluctuations or economic conditions.
Predictable Payments
Know exactly what your principal and interest payment will be every month for the entire fixed rate mortgage term.
Protection from Rate Increases
Lock in today's rates with a fixed rate mortgage. If rates rise to 8% or 10%, yours stays the same.
Build Equity Consistently
With each fixed rate mortgage payment, you build equity at a predictable pace toward full ownership.
Fixed Rate Mortgage Terms
Choose the fixed rate mortgage term that aligns with your financial goals and monthly budget.
30 Year
Most Popular Fixed Rate Mortgage
- Lowest monthly payment
- Maximum affordability
- Easier qualification
- Greater cash flow flexibility
- Ideal for long-term holds
20 Year
Balanced Fixed Rate Mortgage
- Moderate monthly payment
- Lower total interest
- Often similar rates to 30-year
- 10 years earlier payoff
- Great middle ground option
15 Year
Fastest Payoff
- Lowest interest rate
- Rapid equity building
- Significant interest savings
- Higher monthly payment
- Own free & clear sooner
How a Fixed Rate Mortgage Works
With a fixed rate mortgage, your interest rate is locked in at closing and never changes throughout the life of the loan. Whether market rates rise to 10% or fall to 4%, your fixed rate mortgage rate stays exactly the same. This provides complete certainty for budgeting and long-term financial planning.
The principal and interest portion of your monthly payment remains constant for the entire fixed rate mortgage term. However, keep in mind that your total monthly payment may still fluctuate slightly due to changes in property taxes or homeowners insurance, which are typically escrowed.
2025 Conforming Loan Limits
According to the Federal Housing Finance Agency (FHFA), the 2025 conforming loan limits are:
Standard Areas: $806,500
High-Cost Areas: Up to $1,209,750
Fixed rate mortgages exceeding these limits require jumbo financing with different qualification requirements.
Fixed Rate Mortgage vs. Adjustable Rate
While adjustable-rate mortgages (ARMs) may offer lower initial rates, they carry the risk of significant payment increases when the rate adjusts. A fixed rate mortgage is ideal for borrowers who value certainty and plan to hold the property long-term. According to Consumer Financial Protection Bureau (CFPB) guidance, understanding the differences is essential before choosing.
A fixed rate mortgage is particularly advantageous for:
- Long-term holds where rate stability matters most
- Rising rate environments to lock in current favorable rates
- Investment properties where predictable cash flow is essential for analysis
- Conservative borrowers who prefer payment certainty over speculation
- First-time buyers who want budgeting simplicity
Fixed Rate Mortgage Qualification Requirements
Qualifying for a fixed rate mortgage involves several factors. Lenders evaluate your creditworthiness, income stability, and overall financial picture. Based on Fannie Mae guidelines, typical requirements include:
- Credit Score: Typically 620+ for conventional fixed rate mortgages (580+ for FHA)
- Down Payment: 3-20%+ depending on loan type and property
- Debt-to-Income: Generally 43-50% maximum DTI ratio
- Income Documentation: W2s, tax returns, or bank statements for self-employed
- Employment History: Typically 2 years in same field or profession
Fixed Rate Mortgage Payment Comparison
The table below illustrates how different fixed rate mortgage terms affect your monthly payment and total interest on a $400,000 loan:
| Term | Typical Rate | Monthly P&I | Total Interest |
|---|---|---|---|
| 30-Year Fixed Rate Mortgage | 6.75% | $2,594 | $534,000 |
| 20-Year Fixed Rate Mortgage | 6.50% | $2,985 | $316,400 |
| 15-Year Fixed Rate Mortgage | 6.00% | $3,375 | $207,500 |
*Rates shown for illustration. Actual fixed rate mortgage rates vary based on credit, down payment, and market conditions.
Fixed Rate Mortgage FAQs
A fixed rate mortgage has an interest rate that remains constant for the entire loan term. Your principal and interest payment never changes, providing complete predictability for budgeting. This is the most popular mortgage type in America, according to Freddie Mac research.
The most common fixed rate mortgage terms are 30, 20, and 15 years. 30-year fixed rate mortgages offer the lowest payment, while 15-year terms offer the lowest total interest cost. 20-year fixed rate mortgages provide a balanced middle ground between payment size and interest savings.
A fixed rate mortgage provides payment certainty and protection against rising rates. It's ideal for long-term holds, investment properties, and borrowers who prefer predictable payments. An ARM might make sense if you plan to sell or refinance within 5-7 years and want a lower initial rate.
For 2025, conforming loan limits are $806,500 in most areas and up to $1,209,750 in high-cost areas. Fixed rate mortgages exceeding these limits require jumbo financing with different qualification requirements and potentially higher rates.
Yes! Most fixed rate mortgages have no prepayment penalty. You can make extra principal payments anytime to pay off your loan faster and save on interest. Even small additional payments can significantly reduce your total interest over the life of the fixed rate mortgage.
Conventional fixed rate mortgages typically require a 620+ credit score. FHA fixed rate mortgages allow scores as low as 580 with 3.5% down. Higher credit scores qualify for better fixed rate mortgage rates and terms.
Ready to Lock In Your Fixed Rate Mortgage?
Whether you're purchasing your first home or expanding your investment portfolio, we'll help you find the right fixed rate mortgage for your goals.