A more thorough explanation:

A fixed rate mortgage is a type of loan used to purchase a home with an interest rate that remains the same throughout the life of the loan. This means that the monthly payments will not change, making it easier for borrowers to budget and plan for their payments.

Fixed rate mortgages are typically offered for 15, 20, or 30 years. During the early years of the loan, most of the monthly payment goes towards paying off the interest, with a smaller portion going towards the principal. Over time, the amount going towards the principal increases, and the amount going towards interest decreases.

For example, if you take out a 30-year fixed rate mortgage for $200,000 at an interest rate of 4%, your monthly payment would be $955. During the first year of the loan, $7,936 would go towards paying off the interest, and $3,264 would go towards the principal. By the end of the loan, you would have paid a total of $343,739, with $143,739 going towards interest and $200,000 going towards the principal.

Fixed rate mortgages are different from adjustable rate mortgages (ARMs), which have interest rates that can change over time. ARMs typically have lower interest rates at the beginning of the loan, but the rate can increase after a certain period of time, making it harder for borrowers to budget and plan for their payments.