What kind of mortgage would typically involve a fixed interest rate?

A fixed-rate mortgage is a type of loan where the interest rate remains constant throughout the life of the loan. This means the borrower will pay the same interest rate and, consequently, the same monthly payment each month until the mortgage is paid off. The predictability of fixed monthly payments makes fixed-rate mortgages a popular choice for many homebuyers since they can easily budget for their housing costs without worrying about fluctuations in interest rates.

While other options listed might also potentially offer fixed-rate terms, they may also include adjustable-rate options or terms that can vary. For instance, subprime mortgages typically refer to loans offered to borrowers with lower credit ratings, and these can often involve variable interest rates or terms that change over time. FHA loans and VA loans are government-backed loans that can also offer fixed-rate options, but they can vary based on the lender and the specifics of the loan agreement.

Thus, the fixed-rate mortgage is specifically designed to provide stability in interest rates, making it the most straightforward choice among the listed options for guaranteed fixed terms.