What is the difference between a fixed-rate and an adjustable-rate mortgage?

What is the difference between a fixed-rate and an adjustable-rate mortgage?

• A. A fixed-rate mortgage has a constant rate and payment; an adjustable-rate mortgage changes rate and payment over time based on an index.
• B. A fixed-rate mortgage changes rate monthly; adjustable-rate remains constant.
• C. A fixed-rate mortgage has variable payments that can increase.
• D. An adjustable-rate mortgage never changes.

Answer: (A)