What are the differences between variable and fixed APR, and how do they impact the overall cost of borrowing?

Variable APR can change based on market conditions, while fixed APR remains the same throughout the loan term. Variable APR can lead to fluctuating monthly payments, making it harder to budget, while fixed APR provides stability. Variable APR can result in lower initial rates but may increase over time, potentially raising the overall cost of borrowing. Fixed APR offers predictability and may be more cost-effective in the long run.