Which type of mortgage has a consistent interest rate throughout the loan term?

A fixed-rate mortgage is characterized by a consistent interest rate throughout the entire loan term. This means that the borrower will have predictable monthly payments, as the principal and interest amounts do not change over time. This stability is particularly appealing to many borrowers because it allows for effective budgeting and protects against potential interest rate increases in the future.

In contrast, other mortgage types, like adjustable-rate mortgages, have interest rates that can fluctuate based on market conditions after an initial fixed period. This can lead to varying monthly payments, making it difficult for borrowers to predict their future financial obligations.

Federal loans can be either fixed or adjustable, so they do not inherently have a consistent interest rate. Similarly, a negative amortization mortgage typically involves a situation where the monthly payments are less than the interest due, leading to increasing loan balances, thus lacking a consistent rate feature. Therefore, the distinguishing feature of a fixed-rate mortgage is its unwavering interest rate throughout its term.