Commercial banks most commonly provide floating rate loans. However, borrowers who prefer a fixed rate can obtain an agreement that exchanges floating rate payments for a fixed rate schedule. This type of agreement is more commonly referred to as a(n):

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An interest rate swap is an agreement between two parties to exchange interest rate payments. In this case, a borrower would exchange their floating rate loan payments for a fixed rate schedule through the interest rate swap agreement. Curtailment refers to the reduction of debt, defeasance is the substitution of collateral, and foreclosure is the legal process of seizing collateral to satisfy a debt. None of these options relate to the scenario described in the question.

Commercial Banks Most Commonly Provide Floating Rate Loans