A fixed-rate mortgage is a home loan with an interest rate that remains the same for the entire term of the loan, typically 15, 20, or 30 years. This means your monthly mortgage payments of principal and interest do not change over time, providing predictability and stability in your financial planning.

Individuals seeking stability in their monthly housing costs, those planning to stay in their home for a long period, and borrowers who prefer the predictability of fixed monthly payments should consider a fixed-rate mortgage. It's ideal for those who want to avoid the risk of rising interest rates affecting their payments.

Yes, you can make extra payments or pay off your fixed-rate mortgage early without penalty in most cases. This can reduce the total amount of interest you pay over the life of the loan. However, it's important to check with your lender for any specific terms regarding early repayment.

If interest rates fall significantly, you may have the option to refinance your mortgage to take advantage of the lower rates. Refinancing involves obtaining a new mortgage with new terms and possibly new costs, so it's essential to consider whether the potential savings justify the expenses involved.

Your credit score significantly influences the interest rate you're offered on a fixed-rate mortgage. Higher credit scores typically qualify for lower interest rates, which can result in lower monthly payments and less interest paid over the life of the loan.

Beyond the principal and interest, homeowners with fixed-rate mortgages will also be responsible for property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if the down payment was less than 20%. Closing costs are also a factor when initially obtaining the loan.

To apply for a fixed-rate mortgage, start by shopping around with different lenders to compare rates and terms. You'll need to provide financial documentation, such as proof of income, employment verification, credit history, and information on your debts and assets. After choosing a lender, you'll complete an application, and the lender will process your loan, including an appraisal of the property and a review of your financial situation.