What type of mortgage is most suitable for someone wanting predictable payments?

A fixed-rate mortgage is designed to provide borrowers with consistent and predictable payments over the life of the loan. This type of mortgage features an interest rate that remains constant, meaning that both the principal and interest components of monthly payments do not change. This stability allows borrowers to effectively budget their finances without worrying about fluctuating monthly payments, which can happen with other types of mortgages that have variable interest rates.

In contrast, adjustable-rate mortgages can start with lower payments that may increase significantly over time, leading to unpredictability in budgeting. Interest-only mortgages only require payments on the interest for a period, which can result in large lump-sum payments later on, making them less predictable. Flexible-rate mortgages, while offering some adjustable features, also introduce variability in payment amounts. Thus, for someone seeking consistent and reliable payment amounts, a fixed-rate mortgage is clearly the most suitable choice.