Which of the following best describes a fixed-rate mortgage?

A fixed-rate mortgage is characterized by having an interest rate that remains the same throughout the entire duration of the loan. This means that the borrower can anticipate consistent monthly payments, which simplifies budgeting and provides stability against interest rate fluctuations that can occur in the broader market.

While other mortgage types, such as adjustable-rate mortgages, may offer lower initial rates or different down payment requirements, the distinguishing feature of a fixed-rate mortgage is the assurance of a constant rate over time, protecting borrowers from potential increases in interest rates. This stability is particularly advantageous in planning long-term financial commitments.

This clarity about the fixed nature of the interest rate is why this choice is considered the best description of a fixed-rate mortgage.