Fixed Loan Programs Fixed rate loans provide the least risk to lenders over the long term. If you are planning to keep your home for a period beyond what you are able to predict, a 30 year fixed rate loan is for you.
Interest rates remain unchanged for the entire duration.
Because the term is fixed for 30 years, the rate that a lender will charge is slightly higher when compared to shorter terms. The trade-off is security at a higher price. How long you intend to live in the property plays an important role in deciding what loan is best for you. Fixed rate loans with shorter terms are also available. The advantage is that you pay off your loan sooner and the interest rate is lower than the 30-year fixed rate.