Home Owner Financing
With a fixed-rate mortgage, your interest rate - and your monthly payment of principal and interest - will stay the same for the entire term of the loan. This type of mortgage tends to be the most popular because it protects homeowners from the possibility of future monthly payment increases (a situation faced by borrowers who select an adjustable-rate mortgage) and is very straightforward.
When might a fixed-rate mortgage make sense?
If you plan on owning your home for a long time (generally 7 years or more).
If you have a monthly budget you need to stick to and prefer payment stability. (Keep in mind that your property tax and homeowners insurance payments can fluctuate throughout the life of your loan. But your monthly principal and interest payment will never change.)