How do I choose between a fixed, adjustable rate (ARM) and interest-only mortgage loan?
Each loan has specific advantages. For example, the fixed rate loan provides you with the safety and security of knowing your rate is locked in for the entire term of your loan, and that your monthly payment won’t change. An adjustable rate mortgage (ARM) usually has a lower payment amount in the beginning of the loan so that you can take care of other necessary expenses, like buying furniture for a new home. Interest-only loans usually have an even lower payment in the beginning, but require a large balloon payment at the end of the loan. Talk to an Alliant loan specialist to help determine the loan that’s right for you.
