The most common type of home loan is a fixed-rate mortgage, usually a 30 year term. What is a fixed-rate mortgage? With a fixed-rate mortgage loan you lock in your interest rate for the life of the loan. You never have to worry about your rate or payment changing, it remains the same until the end of the loan. A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan. Generally, lenders can offer either fixed, variable or adjustable rate mortgage loans with A fixed-rate mortgage (FRM) is a fully amortizing 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". As a result, payment amounts and the duration of the loan are fixed and the person who is responsible for paying back the loan benefits from a consistent, single payment and the ability to plan a budget based on this fixed cost.