A fixed-rate home mortgage uses a fixed interest rate that stays the same for the entire term of the loan; as oppose to variable rate loans where the interest rate fluctuates as interest rates go up or down due to market conditions. With a fixed-rate home mortgage you ensure the payment of principal and interest stay the same for the duration of the note. Standard terms for fixed-rate mortgages are 15 years and 30 years in the United States, although shorter and longer terms are available.

We only discuss fixed-rate home mortgages in this section because it is impossible to calculate what the interest rates will be in the future. You can get a basic idea of what the loan will start with, but remember your payments will go up or down depending on the going interest rate. By doing this the lender allows you to assume the risk of rising interest rates.

Use the fixed-rate home mortgage calculator to find out how much your monthly payment will be for a given loan value. Just enter the amount of your loan, interest rate, and term of your loan and our calculator will show you an estimated payment. This will make it easy for you to find the price range that is right for you.

If you want to use or better understand the formula used to calculate your payment see the formula in the box below.

r= interest rate
p= principal
c= monthly payment
n= term of loan in months