When you plan to stay for the long haul
Fixed-rate loans are popular with those planning to stay put in their home for a while because they offer payment stability. These loans offer the same interest rate for the entire repayment term, normally 10, 15, 20, or 30 years. The shorter the loan term, the lower the interest rate. For example, a 15-year fixed will have a lower interest rate than a 30-year fixed. Of course, your monthly payments could fluctuate if your property tax and insurance rates change, but the interest rate itself remains the same. And should rates drop significantly, you could refinance. The fixed-rate mortgage is the workhorse of the mortgage world and is a good choice for many buyers who plan to live in their homes for a long time.