Fixed-rate mortgage
What is fixed-rate mortgage?
A fixed-rate mortgage keeps the same interest rate and the same principal-and-interest payment for the entire term.
What it means in practice
Predictability is the product. Your P&I never changes, though your total payment can still move as taxes and insurance change.
Fixed rates normally start higher than adjustable rates, which is the price of transferring rate risk to the lender.
A fixed rate below current market pricing is a real asset. Preserving it is the argument for a second lien or a recast instead of a refinance.