Which statement is true about a fixed-rate mortgage?

Which statement is true about a fixed-rate mortgage?

• A. The Interest Rate Can Change During the Term
• B. The Monthly Payment Never Changes
• C. The Interest Rate Remains Constant for the Term of the Loan
• D. It Requires a Variable Payment Schedule

Answer: (C)

With a fixed-rate mortgage, the interest rate is locked in at closing and stays the same for the entire loan term. That constant rate lets lenders calculate a predictable repayment plan, so you’re protected from rate swings and can budget with confidence. The defining feature here is the rate not changing; other statements describe features of different loan types or nuances of payments, but they don’t capture the core idea.

With a fixed-rate mortgage, the interest rate is locked in at closing and stays the same for the entire loan term. That constant rate lets lenders calculate a predictable repayment plan, so you’re protected from rate swings and can budget with confidence. The defining feature here is the rate not changing; other statements describe features of different loan types or nuances of payments, but they don’t capture the core idea.