What does it mean if a mortgage has a fixed rate?

A mortgage with a fixed rate means that the interest rate remains the same throughout the entire term of the loan. This characteristic provides stability for borrowers, as they can predict their monthly payments over the life of the loan without worrying about fluctuations in interest rates due to market changes. This stability is particularly beneficial in budgeting and financial planning, allowing homeowners to have a clear understanding of their long-term financial obligations. In contrast, other options refer to features associated with variable rate mortgages, short-term loans, or special offers, which do not apply to fixed-rate mortgages.