With a fixed rate loan, monthly principal and interest payments are the same for the entire loan term. You can choose from an assortment of different loan terms ranging from 10-30 years. On longer term loans, even though the interest paid is higher, the payments are less. This is reversed for shorter term loans, as the monthly principal and interest payment is higher but the interest paid is significantly less. Fixed rate loans lock in the interest rate for the entire loan term, so you have protection from rising interest rates for the life of the loan – no matter what.