One rate for the term of the loan

Fixed-rate mortgages have an interest rate that never changes during the entire term of the loan. The most common fixed-rate loans carry a term of 15, 20 or 30 years. Borrowers who opt for a fixed-rate mortgage are protected from a possible rise in interest rates. They have the peace of mind that comes from knowing their interest rate will not change regardless of market volatility and fluctuation. Risk-averse borrowers—especially those who intend to stay in their home for several years—are usually most comfortable with a fixed-rate mortgage.