Adjustable & Fixed Rate Mortgage
Adjustable Rate Mortgage (ARM Loan)
An adjustable-rate mortgage (ARM) is a type of mortgage loan where the interest rate applied on the outstanding balance varies throughout the life of the loan. An ARM Loan can be fixed for a short period 1 year, 3 years, 5 years, 7 years or 10 years.
An adjustable-rate mortgage (ARM) is a type of mortgage loan where the interest rate applied on the outstanding balance varies throughout the life of the loan. An ARM Loan can be fixed for a short period 1 year, 3 years, 5 years, 7 years or 10 years.
Fixed Rate Mortgage
A fixed-rate mortgage has an interest rate that remains the same for the life of the loan. Your total monthly payment of principal and interest will remain the same over the entire period of the loan.
A fixed-rate mortgage has an interest rate that remains the same for the life of the loan. Your total monthly payment of principal and interest will remain the same over the entire period of the loan.
After this initial fixed period of time, the interest rate will float with the market and can go up or down at yearly or even monthly intervals.
A fixed-rate mortgage is the most popular type of financing because it offers predictability and stability for your budget.