Fixed Rate Mortgage (FRM) is the most common type of mortgage in which the interest rate remains fixed throughout the entire loan term.
For example, Andrew took a mortgage of $100,000 for 15 years at 4% interest rate from Carole. The interest rate which is 4% will not change throughout the term of the loan. This type of mortgage is known as 'fixed rate mortgage'.

Features:

• The loan term usually varies from 15 to 30 years.
  
• The monthly payment towards the principal and the interest remain same throughout the loan period but there may be a change in the property taxes and homeowner's insurance paid by the borrower.
  
• During the initial period of the loan, the borrower pays a large interest than that paid towards the end of the loan term. The monthly payment towards the principal, remains low during the initial period and increases towards the end of the loan term.
  

There are six different kinds of fixed rate mortgages. They are :

• 40 Year mortgage:
  A fixed rate home loan that is to be paid off within a period of 40 years. The monthly payments are lower in comparison to 15 year or 30 year home loans.
  
• 30 year FRM:
  These are payable in 30 years at fixed rates of interest. The monthly payments are lower than that of 15 year mortgages because the interest is amortized for a comparatively longer time frame.
  
• 15 year FRM:
  These long term home loans are paid off in 15 years with monthly payments higher than that for long term loans like 30 year mortgages. The total interest payment is lower as the amortization period is shorter.
  
• Bi-weekly mortgage:
  Home loans of this type require payments twice a month, that is, after every two weeks instead of standard monthly payments. Each bi-weekly payment is equal to one-half of the monthly payment.
  
• Convertible mortgage:
  Convertible fixed rate mortgages provide homeowners with a loan which can be converted to a low interest rate.
  
• Balloon mortgage:
  Balloon mortgage refers to a short term fixed rate home loan requiring low monthly payments for a period of 5 to 7 years. At the end of the short term, the remaining balance is paid in a lump sum amount known as the Balloon payment. There is also the option to convert into a long term fixed rate loan in case the borrower fails to make the balloon payment.
  

A fixed rate mortgage ensures fixed monthly payments but a longer loan term demands greater amount of interest compared to a shorter loan term in a fixed rate mortgage.