Question

Sally prefers the predictability of a mortgage payment that doesn't change during the repayment. Which type of loan offers this feature?

1) Fixed-rate mortgage
2) Adjustable-rate mortgage
3) Interest-only mortgage
4) Reverse mortgage

Answer 1

A fixed-rate mortgage offers the predictability of a mortgage payment that doesn't change during the repayment.

Step-by-step explanation:

A fixed-rate mortgage offers the predictability of a mortgage payment that doesn't change during the repayment. With a fixed-rate mortgage, the interest rate remains the same over the life of the loan, whether it is for 15 or 30 years. This means that the monthly mortgage payment will remain constant, providing stability and predictability for the borrower.