A fixed rate loan is one in which the interest rate remains the same for the entire term of the loan. A fixed rate loan would allow the borrower to “lock in” the rate for the life of the loan and not be concerned with interest rate fluctuations.

These loans allow the borrower to know what their principle and interest payment would be for the life of the loan. This loan is ideal for people who plan on being in their home for an extended period of time or do not want to worry about fluctuating interest rates.

Fixed rate loans, depending on the loan program (VA, FHA, ect), can have terms as long as 30 years and as short at 5 years.