Quick answer
A fixed-rate mortgage is a home loan whose interest rate is set when you take out the loan and doesn’t change for its whole term, so the principal-and-interest part of the payment stays the same from the first month to the last.
Key facts
0.89%
US effective property tax rate (used in the example)
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
What stays fixed — and what doesn’t
Only principal and interest are locked in. Property tax and homeowners insurance collected through an escrow account can rise or fall each year, and mortgage insurance can drop off.
On a $375,000 home with 20% down, a 30-year fixed loan at 7.24% has principal and interest of $2,044. With taxes at the US effective rate of 0.89% and typical insurance, the full payment starts near $2,476. If the tax bill and premium each rise 10%, it becomes about $2,519 — even though the rate never moved.
Fixed vs adjustable
Certainty has a price: an adjustable-rate mortgage often starts lower but can reset later. With a fixed loan, the only way to get a lower rate is to refinance. Freddie Mac’s weekly averages are 7.24% for 30-year and 6.6% for 15-year fixed loans; the loan term you pick changes both the rate and the payment. The fixed vs adjustable guide compares the two in depth.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average; 15-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- CFPB: What is the difference between a fixed-rate and adjustable-rate mortgage (ARM) loan?
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.