Finance
A Colorado lender offers a 30-year fixed-rate mortgage. 'Fixed-rate' means:
AThe monthly payment will increase annually with inflation
BThe interest rate remains constant throughout the entire loan term✓ Correct
COnly the principal portion of the payment is fixed
DThe rate is fixed for 5 years and then adjusts
Explanation
A fixed-rate mortgage maintains the same interest rate for the entire loan term. The monthly principal and interest payment remains constant, making budgeting predictable for the borrower.
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