In the context of mortgages, what does 'fixed-rate' mean?

In the context of mortgages, 'fixed-rate' refers to a consistent interest rate for the duration of the loan. This means that once the mortgage is secured, the interest rate remains unchanged throughout the entire repayment period. This predictability allows borrowers to plan their finances, as their monthly mortgage payments will not fluctuate based on market conditions or interest rate changes.

In contrast, variable or adjustable-rate mortgages have interests that can change based on different factors, such as market fluctuations, which can lead to unpredictable payment amounts over time. A fixed-rate mortgage provides stability and peace of mind for borrowers, ensuring that their payment obligations remain constant throughout the life of the loan.