Which type of mortgage features a fixed interest rate for the duration of the loan?

A fixed-rate mortgage is designed to maintain a constant interest rate throughout the entire term of the loan, which provides borrowers with stability in their monthly payments. This predictability allows borrowers to effectively budget for their housing expenses without the risk of fluctuating rates that can occur with other types of mortgages.

In contrast, an adjustable-rate mortgage typically starts with a lower rate that can change periodically based on market conditions, leading to potential increases in monthly payments. An interest-only mortgage allows the borrower to pay only the interest for a certain period, after which they must start paying down the principal, which can create payment variability. A balloon mortgage generally involves lower initial payments followed by a large payment due at the end of the term, also leading to payment uncertainty. Thus, the fixed-rate mortgage stands out for its long-term consistency.