Fixed Rate Loans
A fixed rate loan is one in which the rate is “fixed” for the life of the loan. It never goes up or down; it is locked in. It can be a conventional, FHA or VA loan. It can be for 15-, 30-, or 40-year terms. But whatever type it is, the rate will remain the same which is why it is called a fixed rate. So if you start out with a monthly payment of $890 per month, you will keep that payment and it will not rise, even if interest rates rise. Most people prefer a fixed rate mortgage because it offers a sense of stability and security.