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Fixed-rate mortgage (FRM)

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Fixed-rate Mortgage (FRM)

A fixed-rate mortgage (FRM) is a type of mortgage loan in which the interest rate remains the same for the entire term of the loan. This means that the borrower will pay the same amount each month for the duration of the loan, regardless of any changes in the interest rate. This type of loan is popular among homeowners because it provides stability and predictability in their monthly payments.

History of Fixed-rate Mortgages

Fixed-rate mortgages have been around since the early 1900s, when they were first introduced in the United States. At the time, they were seen as a way to provide stability and predictability to homeowners, as the interest rate would remain the same for the entire term of the loan. Since then, fixed-rate mortgages have become the most popular type of mortgage loan in the United States, and they are now available in many other countries as well.

In the United States, the Federal Reserve Board sets the maximum interest rate for fixed-rate mortgages. This rate is known as the “conforming rate” and is based on the average rate of interest for all mortgages in the United States. The conforming rate is typically lower than the rate for other types of mortgages, such as adjustable-rate mortgages.

Comparison of Fixed-rate Mortgages

Type of Mortgage Interest Rate Monthly Payment
Fixed-rate Mortgage 3.5% $1,000
Adjustable-rate Mortgage 4.5% $1,100


Fixed-rate mortgages are a popular type of mortgage loan in which the interest rate remains the same for the entire term of the loan. This provides stability and predictability in the monthly payments, and makes it easier for homeowners to budget for their mortgage payments. For more information about fixed-rate mortgages, you can visit websites such as,, and

See Also

  • Adjustable-rate Mortgage (ARM)
  • Interest-only Mortgage
  • Balloon Mortgage
  • FHA Loan
  • VA Loan
  • Jumbo Loan
  • Reverse Mortgage
  • Conforming Loan
  • Non-conforming Loan
  • Mortgage Refinancing

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