Final answer:
The best mortgage option for Marian to have predictable monthly payments is a Fixed-rate mortgage, as it maintains the same interest rate for the entire life of the loan.
Step-by-step explanation:
If Marian wants to know exactly what her mortgage payments will be each month, the best choice for her would be a c. Fixed-rate mortgage. A fixed-rate mortgage has the same interest rate and monthly payment for the entire life of the loan, which could be for 15, 20, or 30 years. This type of mortgage provides stability and predictability in budgeting because the mortgage payment will stay the same despite any changes in the market interest rates or inflation.
Conversely, an adjustable-rate mortgage or variable-rate mortgage fluctuates with market interest rates, and thus the monthly payment may increase or decrease over time. This could make budgeting more challenging. An escrow account, while often used in conjunction with mortgage payments to pay for property taxes and home insurance, has no direct effect on the predictability of the loan's monthly payments.