Fixed-Rate Mortgages

Fixed-rate mortgages’ monthly principal and interest payments do not change over the life of the loan. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.

At the beginning of a fixed-rate loan, a higher percentage of each monthly payment is applied toward interest, not principal. Over the course of the term, this will even out and reverse as a larger percentage of each payment goes toward principal.