Mortgage products
Fixed-Rate Mortgage
A mortgage where the interest rate stays the same for the entire term, so your payment never changes mid-term.
A fixed-rate mortgage locks in your interest rate for the full term (most commonly 5 years). Your monthly payment is identical from start to end of the term, which makes budgeting straightforward and protects you from rate increases.
The trade-off is the prepayment penalty if you break the term early. Fixed mortgages use the higher of three months' interest or the Interest Rate Differential (IRD). For longer terms or substantial rate drops since you signed, IRD penalties can be significant — sometimes tens of thousands of dollars. If you think you might sell, refinance, or move within the term, ask your agent to model the break-cost scenarios before locking in.