Finance
In Tennessee, a 'fixed-rate mortgage' provides the borrower with the benefit of:
AA lower initial rate than an ARM
BPayment certainty — the interest rate and monthly P&I payment remain constant throughout the loan term✓ Correct
CAutomatic rate reductions when market rates fall
DNo prepayment penalties in any circumstance
Explanation
A fixed-rate mortgage locks in the interest rate for the full loan term, providing payment stability and predictability regardless of market rate changes — particularly valuable when rates are rising.
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