A fixed-rate mortgage is a mortgage loan that has a fixed interest rate for the entire term of the loan. Equal payments are made over the life of the mortgage.

$PMT = \frac{\text{Principal}}{\left(\frac{1 - (1 + r)^{-n}}{r}\right)}$

Where:

• PMT = amortized amount for each month
• r = monthly interest rate (annual rate / 12)
• n = total number of months

r = 0.055 / 12 = 0.004583, n = 10 × 12 = 120

PMT = \frac{500{,}000}{\frac{1 - (1 + 0.004583)^{-120}}{0.004583}} = \`$5`{,}426.21

On a financial calculator:

• n = 120
• I/Y = 0.4583 (5.5/12)
• PV = -500,000
• FV = 0
• CPT ⇒ PMT = $5,426.21