What is a characteristic of a fixed-rate mortgage?

A fixed-rate mortgage is characterized by an interest rate that remains constant throughout the entire term of the loan. This means that the borrower’s monthly payments are stable and predictable, allowing for easier budgeting since the interest costs will not change over time. The certainty of the fixed interest rate can be particularly appealing in a fluctuating economic environment, providing protection against rising interest rates that could increase monthly payments in other types of mortgages, such as variable or adjustable-rate mortgages.

The other options describe features that do not apply to a fixed-rate mortgage. For example, a mortgage with a fluctuating interest rate would fall under the category of variable or adjustable-rate mortgages. An upfront payment is not specific to fixed-rate mortgages alone, as many types of mortgages require some form of upfront payment. A mortgage that has a variable payment schedule typically implies variability in payment amounts due to changing interest rates, which is not a characteristic of a fixed-rate mortgage.