What is a major characteristic of a fixed-rate mortgage?

A major characteristic of a fixed-rate mortgage is that it maintains the same interest rate throughout the loan term. This stability enables borrowers to predict their monthly mortgage payments, which can significantly aid in budgeting and financial planning. Such mortgages are beneficial for those who prefer certainty in their financial commitments, as they are insulated from fluctuating interest rates in the market.

If interest rates rise during the term of the loan, borrowers with fixed-rate mortgages will not be affected; they continue to pay the original rate agreed upon. This characteristic makes fixed-rate mortgages a popular choice for long-term home buyers who want the security of unchanging payments over the duration of their loan.