What type of loan may be a fixed or adjustable rate?

A mortgage loan can indeed be structured as either a fixed-rate loan or an adjustable-rate loan, which is why this choice is correct.

Fixed-rate mortgage loans maintain the same interest rate throughout the life of the loan, providing predictable monthly payments. This stability is appealing for long-term budgeting. On the other hand, adjustable-rate mortgage loans have interest rates that may change over time based on market conditions, meaning that payments can vary. This type of loan often starts with a lower rate that might be advantageous initially but can increase after a specified period.

While it is true that home equity loans can also have fixed or adjustable rates, the broader term "mortgage loan" encompasses different types of loans that can be used for financing the purchase of a home or refinancing existing mortgages, thus making it the best answer in this context. Auto loans and personal loans, while potentially having fixed rates, are generally not structured with the same flexibility regarding adjustments as mortgage loans, limiting their classification.