Fixed Rate Mortgage
What is a fixed-rate mortgage?
A mortgage with the same interest rate for the entire loan term — no adjustments, no rate shock, fully predictable payments.
A fixed-rate mortgage is a loan whose interest rate is locked in at origination and remains the same for the entire term. Principal, Interest, and the loan’s amortization schedule never change — only the property tax and insurance escrow components of PITIA can shift year over year. From day one to the final payment, the borrower knows exactly what the rate is.
Three common terms exist in the U.S. mortgage market: 15-year, 30-year, and (less commonly) 40-year. The 30-year fixed is by far the most common — it offers a moderate monthly payment while spreading amortization over a long enough horizon to be affordable. The 15-year builds equity twice as fast and carries a slightly lower rate, but the higher monthly payment limits its use to borrowers with strong cash flow.
Fixed-rate mortgages eliminate the “rate shock” risk that comes with ARMs — the borrower never faces a payment increase because of an adjustment. This makes them the default choice for long-hold investors, primary residence borrowers, and anyone who prioritizes payment certainty.
How fixed-rate mortgages apply at Total Quality Lending
Total Quality Lending offers 15-year, 30-year, and 40-year fixed terms across all programs: DSCR, Prime Time, Multi-Unit DSCR, and Foreign National DSCR. The 40-year fixed is only available when combined with an interest-only feature on eligible programs — typically used by long-hold investors maximizing monthly cash flow on a rental property.