What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

A fixed-rate mortgage keeps the same interest rate, so the scheduled payment on an existing loan does not change when the economy slows. An economic downturn may affect interest rates on new loans, but it does not adjust the rate on this borrower’s fixed-rate mortgage. Therefore, the best choice is “It has no impact because a fixed-rate mortgage cannot change.”

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