A fixed-rate loan locks in your interest rate for the entire loan term, which typically is 30 years (also called the amortization period). Most buyers choose a 30-year fixed-rate loan because they like the long-term predictability. Interest rates are typically a little higher on a loan that grantees a fixed interest rate for 30 years compared to a product that is only fixed for 5 years, but it gives buyers predictability and peace of mind.