What is a Fixed Rate?  With a fixed-rate loan, your monthly payment of principal and interest never change for the life of your loan. As your property taxes, and homeowner's insurance premium part of your monthly payment goes up, on the fixed-rate loan your payment will be very stable.
Fixed-rate loans are available in many options: 30-year, 20-year, 15-year, even 10-year. Some fixed-rate mortgages are called "biweekly" mortgages and shorten the life of your loan. You pay every two weeks, a total of 26 payments a year, this adds up to an "extra" monthly payment for every year. During the early amortization period of a fixed-rate loan, a large percentage of your monthly payment goes towards your interest, and a much smaller part towards your principal. That gradually reverses itself as the loan ages. You might choose a fixed-rate loan if you want to lock in a low rate. If you have an Adjustable Rate Mortgage (ARM) now, refinancing with a fixed-rate loan can give you more monthly payment stability.
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