What is a key feature of a fixed-rate mortgage?

A fixed-rate mortgage is characterized by a consistent interest rate throughout the entire loan term, which can typically range from 15 to 30 years. This feature provides borrowers with the certainty of stable monthly payments, making it easier to budget and plan for future expenses. The fixed interest rate protects the borrower from fluctuations in market interest rates, ensuring that their financial obligations remain predictable over time.

In contrast, adjustable-rate mortgages, which can fluctuate based on market conditions, do not offer the same stability. A fixed-rate loan is particularly advantageous in a rising interest rate environment, as borrowers can lock in a lower rate than what they might face in the future if they opted for an adjustable-rate loan. This assurance is especially valuable for long-term financial planning and stability.