A Fixed rate mortgage is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float".

This payment amount is independent of the additional costs on a home sometimes handled in escrow, such as property taxes and property insurance. Consequently, payments made by the borrower may change over time with the changing escrow amount, but the payments handling the principal and interest on the loan will remain the same.

Fixed rate mortgages are characterized by their interest rate, including compounding frequency, amount of loan, and term of the mortgage (typically 15, 20 or 30 years). With these three values, the calculation of the monthly payment can then be done. Fixed rate mortgages are usually more expensive than adjustable rate mortgages, due to the inherent interest rate risk, long-term fixed rate home loans will tend to be at a higher interest rate than short-term loans.