What distinguishes a fixed-rate mortgage from an adjustable-rate mortgage?

The defining characteristic of a fixed-rate mortgage is that it has a constant interest rate throughout the life of the loan. This means that the monthly payments remain stable and predictable, making budgeting easier for homeowners. Borrowers with fixed-rate mortgages can plan their finances with confidence, knowing they won't experience any fluctuations in their interest rate or monthly payment amount due to market changes over time.

This stability contrasts with adjustable-rate mortgages, which can have varying interest rates that are typically lower at the beginning but can change at predetermined intervals based on market conditions. This could lead to higher payments in the future, which isn't the case with fixed-rate mortgages.

Other options discussing easier obtainability, lower initial payments, or fixed fees don't capture the essence of what fundamentally distinguishes these two types of mortgages. The key factor that differentiates the fixed-rate mortgage is indeed having a consistent interest rate for the duration of the loan.