Which of the following is a common arrangement for fixed-rate loans?

Fixed-rate loans are characterized by a consistent and predictable repayment structure, which is typically manifested through fixed payments. In this arrangement, the borrower pays a set amount each month that includes both principal and interest, making it easier to budget and plan finances over the term of the loan. This stability is a key advantage of fixed-rate loans, as borrowers do not have to worry about fluctuating payment amounts due to changes in interest rates.

While other payment structures, such as variable payments, interest-only payments, and balloon payments, exist, they do not offer the same level of predictability and consistency as fixed payments. Variable payments can change based on interest rate adjustments, interest-only payments allow for initial lower payments that do not contribute to principal reduction during the interest-only period, and balloon payments involve a large final payment after a series of smaller payments, which can be difficult for borrowers to manage. These alternatives might serve specific situations or borrower needs but do not represent the common structure associated with fixed-rate loans.