What remains constant in a fixed-rate mortgage?

In a fixed-rate mortgage, the feature that remains constant is the interest rate. This means that from the moment the mortgage is originated, the interest rate does not change throughout the life of the loan. As a result, borrowers are assured predictable monthly payments, making it easier to budget for housing costs over the long term.

While the loan amount, term length, and payment schedule are also important elements of a mortgage, they may not be constant in the same sense. The loan amount is fixed at the time of the mortgage agreement, but if a borrower refinances or takes out a second mortgage, this amount may change. The term length, which is typically set at the beginning of the mortgage (such as 15 or 30 years), does not change unless there is a refinance, but it is not inherently “constant” in the context of how the loan works. The payment schedule is predetermined based on the terms of the loan, but may change if the borrower falls behind on payments or modifies their loan. Therefore, the defining feature of a fixed-rate mortgage that remains unchanged throughout its duration is indeed the interest rate.