Which type of mortgage rate remains constant throughout the loan term?

A fixed rate mortgage is a type of loan where the interest rate remains constant for the entire duration of the loan term. This consistency allows borrowers to have predictable monthly payments, making budgeting easier and providing stability against interest rate fluctuations in the broader market.

Fixed rate mortgages are particularly popular because they protect borrowers from the risk of rising interest rates, ensuring that their payment structure will not change over time. This contrasts with adjustable rate mortgages (often referred to as variable rate mortgages), where the interest rate can change based on market conditions, leading to potential increases in monthly payments.

In summary, the key feature of a fixed rate mortgage is its unchanging interest rate, which offers borrowers long-term security and predictability in their financial planning.