What is a fixed-rate mortgage?

A fixed-rate mortgage is a home loan in which the interest rate — and therefore the principal and interest portion of the monthly payment — remains the same for the entire life of the loan. Common fixed-rate terms are 15, 20, and 30 years. Because the rate never changes, borrowers have complete predictability about their payment obligations, making budgeting straightforward.

Fixed-rate mortgages are by far the most common loan type for primary and secondary home purchases in the Western Catskills. For buyers putting down roots in Delaware, Otsego, Greene, or Ulster counties, the stability of a fixed payment is particularly appealing — especially for full-time residents budgeting around rural living costs, or second-home buyers managing the property as a vacation rental. In a rising interest rate environment, locking in a fixed rate protects against future increases; in a falling rate environment, refinancing is always an option.