Fixed rate mortgages allow for borrowers to pay their mortgage repayments on a set monthly amount that will not be subject to change over the course of the mortgage repayment process. For example, if you purchase a home today under the term of a 30 year fixed rate mortgage and your current monthly mortgage repayment is $1,400 per month, twenty five years from now your monthly mortgage repayment will be the same amount. In other words, since a fixed rate mortgage maintains fixed payments throughout the entire loan term, it helps long-term homeowners in planning their budgets and insulates them form ever increasing interest rates.

Shorter term may potentially lower interest rates, but it means that the monthly payments will be higher. On the other hand, longer term offers a lower monthly payment but may come with a higher interest rates.