A fixed rate is for people who want the stability and convenience of the same principle and interest payment throughout the life of the loan. Versus a variable rate that can change depending on market conditions and the index it is set to. If you expect to live in your home for approximately 8 years or longer it may be worth buying down a fixed rate to get the lowest payment possible. There are many term options such as a 15, 20, or 30 year loan so you can choose the payment that fits your budget.