What type of mortgage maintains the same interest rate throughout its duration?

A fixed rate mortgage maintains the same interest rate throughout its duration, providing borrowers with predictable monthly payments over the life of the loan. This type of mortgage is particularly advantageous for those who prefer stability in their financial planning, as the interest rate and subsequent payments do not fluctuate, regardless of market conditions. As a result, borrowers are shielded from potential increases in interest rates, which can occur with other types of mortgages.

In contrast, an adjustable rate mortgage typically begins with a lower fixed interest rate for an introductory period, after which the rate can change periodically based on market indices. An interest-only mortgage allows the borrower to pay only the interest for a certain period, which can lead to a larger principal balance later, while a balloon mortgage features lower payments initially followed by a large final payment, often leading to uncertainty in future payment amounts. These other choices reflect different structures that do not provide the stable, consistent rates offered by fixed rate mortgages.