FinanceQuestion 68 of 100
A loan in which the interest rate remains constant for the entire term is a:
a.Adjustable-rate mortgage
b.Graduated payment mortgage
c.Balloon mortgage
d.Fixed-rate mortgage
Explanation
A fixed-rate mortgage keeps the same interest rate and, for a fully amortized loan, the same principal-and-interest payment for the life of the loan. An adjustable-rate mortgage changes with an index. Fixed rates give borrowers predictable payments.
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