Anyone buying a home should know about this term. But even after getting a total of 5 Mortgages (3 purchases, 2 Refinance) over the last 6 years I learn something new each time. Fixed rate is exactly what it sounds like it is fixed for the life of the loan. The 30 year fixed rate tends to be the default option. Many people give unsolicited ad"vice" that you should always lock in a 30 year rate when you think the interest rates are low. But this is not the right strategy. Why? Read on... The decision of Fixed vs. Variable rate should be based on how long you think you will live in the place you are buying and your view of where the interest rates are going; or how long you are going to hold onto the property. If you are 100% sure you will not move from here or you have made up your mind you will hold onto this property forever that's when locking in a 30 year fixed rate might make sense. But even then you should weigh it against the Variable rate option and how much ...