Fixed-Rate Mortgage
A fixed-rate mortgage keeps the same interest rate — and the same principal-and-interest payment — for the entire loan, typically 15 or 30 years. It trades a slightly higher starting rate than an ARM for total predictability, the reason it's the most popular U.S. home loan.
The rate is locked, but the payment is not entirely: only principal and interest are fixed, while property taxes and insurance sit in escrow and rise over time, so a “fixed” payment does drift upward. On a $320,000 loan, 30 years at 6.5% costs $2,023 a month and about $408,100 of interest, while 15 years at 5.9% costs $2,683 and about $163,000 — a $660 difference in payment for $245,200 in interest. The overlooked third option is a 30-year paid at the 15-year amount, which clears in 16.1 years for about $195,800, so roughly $32,900 buys the right to drop back to the lower payment whenever you need to.
Put it to work
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Amortization Calculator
Build a complete amortization schedule for any loan: payment, year-by-year principal vs interest split, and the effect of extra payments.
Mortgage Refinance Calculator
Should you refinance? Compare payments, find your break-even month on closing costs, and see the honest lifetime cost — including the term-reset trap.