What is a primary characteristic of fixed-rate mortgages?

A primary characteristic of fixed-rate mortgages is that the interest rate remains the same for the entire loan term. This stability is highly beneficial for borrowers as it allows for predictable monthly payments, making it easier to budget over the life of the loan. Borrowers can avoid the uncertainty associated with fluctuating interest rates, which can lead to varying payment amounts in adjustable-rate mortgages.

This fixed rate protects borrowers from interest rate increases in the market, providing financial security and peace of mind throughout the duration of the loan. The predictability of fixed-rate mortgages is often a primary reason why many people choose them over other mortgage types.