The main advantage of a fixed-rate mortgage is the predictability of monthly payments. Homeowners know exactly how much they need to pay each month, making it easier to budget and plan for the future.

The interest rate is determined at the outset and will not change, regardless of fluctuations in the market interest rates. This can be particularly advantageous if the loan is secured when interest rates are low.

Fixed-rate mortgages offer various loan terms, with 30 years being the most popular due to the lower monthly payments. Shorter terms, like 15 years, usually offer lower interest rates but higher monthly payments.

While the monthly payments are predictable, borrowers with fixed-rate mortgages might end up paying more interest over the life of the loan compared to adjustable-rate mortgages (ARMs) if interest rates fall. However, they are protected from payment increases if interest rates rise.

Borrowers can choose to refinance their mortgage to take advantage of lower interest rates if they drop significantly, though this comes with closing costs and potential fees.