Definition - What does Fixed-Rate Mortgage mean?
A fixed-rate mortgage is a specific type of mortgage that allows for the total monthly payments, including the mortgage principal plus interest charged, to remain fixed for the life of the loan, at which time the mortgage balance is fully paid. The most common terms for a fixed-rate mortgage are 15 and 30 years.
Justipedia explains Fixed-Rate Mortgage
A fixed-rate mortgage differs from an adjustable-rate mortgage (ARM), which has an interest rate that varies as the interest rate fluctuates.
Many homeowners prefer fixed-rate mortgages because they are protected from sudden interest rate fluctuations. They are also easy to understand and are available from a variety of lenders.
Unfortunately, getting a low fixed interest rate may be difficult for some borrowers, especially those with low credit scores and a poor credit history.