# Fixed-Rate Mortgage

*Borrowing & Credit — Finicade finance glossary*

A fixed-rate mortgage keeps the same interest rate for the entire term, so the payment never changes. The 30-year version is a peculiarly American product, and its hidden feature is that it is an option in your favour: if rates fall you refinance, and if they rise you keep the old cheap rate. You pay for that asymmetry in a higher starting rate than an ARM. Over 30 years at typical rates, total interest can approach or exceed the amount borrowed.

**Also known as:** fixed rate loan, 30-year fixed

**Related terms:** [Adjustable-Rate Mortgage (ARM)](https://finicade.com/glossary/adjustable-rate-mortgage), [Mortgage](https://finicade.com/glossary/mortgage), [Amortization](https://finicade.com/glossary/amortization), [Refinancing](https://finicade.com/glossary/refinancing), [Interest Rate](https://finicade.com/glossary/interest-rate)

Source: https://finicade.com/glossary/fixed-rate-mortgage