A fixed mortgage rate stays the same for the entire term of your loan, which means your monthly payments remain predictable and protected from market changes. In contrast, a variable mortgage rate can fluctuate based on changes in interest rates set by lenders or the market, so your payments may go up or down over time. Fixed rates offer stability and peace of mind, while variable rates can sometimes provide lower initial costs and potential savings if interest rates remain low, but they come with a level of risk due to possible rate increases.