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

A fixed rate loan provides a consistent interest rate throughout the entire term of the loan, which means that the monthly principal and interest payments remain stable and predictable. This stability makes it easier for borrowers to budget their finances, as they know exactly what their payments will be for the duration of the loan.

In contrast, an adjustable rate mortgage (ARM) has an interest rate that can change periodically based on market conditions, leading to fluctuating monthly payments. An interest-only loan allows borrowers to pay only the interest for a certain period, after which they would need to start repaying the principal, resulting in varying payment amounts over time. A secured loan is backed by collateral and can be either fixed or adjustable in nature, depending on the specific terms of the loan, but it does not inherently guarantee a consistent interest rate like a fixed rate loan does.