A fixed-rate mortgage offers a constant interest rate throughout the loan term, ensuring stable and predictable monthly principal and interest payments. The rate, determined at loan origination, is influenced by factors like the borrower’s creditworthiness and market conditions but does not change with market fluctuations. This stability allows borrowers to budget effectively, as they are protected from rising interest rates over the life of the loan. While the principal and interest payments remain fixed, total monthly payments may vary if they include variable costs like property taxes and insurance.