What is a common misconception about fixed rate mortgages?

The assertion that a common misconception about fixed-rate mortgages is that the interest rate and payment will change over time is accurate because a key feature of fixed-rate mortgages is their stability. With a fixed-rate mortgage, the interest rate is set at the time of the loan and remains unchanged over the life of the loan, which typically ranges from 15 to 30 years. This provides borrowers with predictability in their monthly mortgage payments, making it easier to budget over the long term. Thus, believing that these payments can fluctuate over time runs counter to the fundamental nature of fixed-rate mortgages.

In contrast, the other options present misconceptions that are not true of fixed-rate mortgages. For example, while fixed-rate mortgages can be a cost-effective choice for some borrowers, they are not universally the cheapest option, as interest rates can vary widely based on market conditions and specific loan terms. Additionally, fixed-rate mortgages come in various durations beyond just 15 years, often including 30 years, and even shorter terms are available. Lastly, fixed-rate mortgages certainly do exist and are one of the most common types of mortgage products available to borrowers.