Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

A fixed-rate mortgage is characterized by having an interest rate that remains the same for the entire life of the loan. This means that the interest rate doesn't fluctuate with market conditions or other factors. Option A is incorrect because a fixed-rate mortgage has a fixed interest rate, not a variable one. Option B is incorrect because the interest rate for a fixed-rate mortgage does not change on an annual basis. Option C is incorrect because while the payment amount may change for certain types of loans, a fixed-rate mortgage maintains a consistent payment amount.