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

A fixed-rate mortgage is characterized by having an interest rate that remains constant throughout the entire term of the loan. This stability allows borrowers to budget their monthly payments without worrying about fluctuating interest rates, which can occur in variable or adjustable-rate mortgages. Borrowers benefit from knowing exactly how much they will owe each month, making long-term financial planning easier.

The other characteristics related to the other options are not applicable to fixed-rate mortgages. In contrast, fluctuating interest rates describe adjustable-rate mortgages. Prepayment options, while potentially available, can often come with penalties in fixed-rate loans, depending on the lender. Lastly, a fixed-rate mortgage does not typically feature a payoff schedule that accelerates principal repayment; it usually follows an amortization schedule unless the borrower opts for additional principal payments.