Built for buyers who'd rather plan than predict.

A fixed-rate mortgage is a home loan with an interest rate that stays the same for the entire term — typically 15, 20, or 30 years. Your principal and interest payment doesn't change, even if market rates rise or fall. That predictability makes it the most popular mortgage structure in the US, especially for first-time buyers and anyone planning to hold the home for more than a few years.

Choose a 15-year fixed if you can comfortably afford a higher monthly payment and want to pay off your home faster while saving substantially on total interest. Choose a 30-year fixed if you want a lower required monthly payment for cash-flow flexibility — you can always make extra principal payments to pay it off early. Most US homeowners choose 30-year terms for the flexibility.

Neither is universally better — it depends on your time horizon. Fixed-rate mortgages are typically the better choice if you plan to stay in the home for more than 5–7 years, because they protect you from rate increases. ARMs may make sense if you're confident you'll sell or refinance within the initial fixed period (usually 5, 7, or 10 years) and want a slightly lower starting rate. For most buyers, the certainty of a fixed rate outweighs the modest savings of an ARM.

Yes. Refinancing from an adjustable-rate mortgage to a fixed-rate mortgage is a common move when rates stabilize or when you decide to stay in the home longer than you originally planned. The refinance creates a new loan with a fixed rate for the remaining term you choose. Talk to a NextGen loan officer about whether your current ARM, target rate, and remaining time in the home make refinancing worthwhile.

Conventional fixed-rate mortgages typically require a minimum credit score of 620. FHA fixed-rate loans allow scores as low as 580 with 3.5% down (or 500 with 10% down). VA fixed-rate loans have no official minimum but most lenders set 580–620 as an overlay. To access the best rates available, most lenders look for a score of 740 or higher. See our full credit score guide for score-by-score breakdowns.

Yes. Almost all fixed-rate mortgages in the US allow extra principal payments without penalty. You can pay extra each month, make occasional lump-sum payments, or refinance into a shorter term. NextGen confirms penalty-free prepayment on every fixed-rate loan we originate. Paying down principal early reduces the total interest you'll pay and shortens the time to full equity.

NextGen closes qualified fixed-rate purchase mortgages in approximately 14 days — about half the industry average of 30–45 days. We hit that timeline by running underwriting, appraisal, and title work in parallel rather than sequentially, and by reviewing every file with a human loan officer rather than an algorithm. Speed matters in a competitive market — sellers prefer buyers who can close quickly.

Your fixed rate is the interest rate applied to your loan balance each month. Your APR (Annual Percentage Rate) is a broader measure that includes the interest rate plus most loan-related fees and costs, expressed as a yearly percentage. APR is typically slightly higher than the rate itself. When comparing loan offers, compare both the rate and the APR — APR gives you a fuller picture of total borrowing cost.