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What is the difference between Fixed and Adjustable rates (ARM)?

April 26, 2017Adjustable arm fixed rates

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What is the difference between Fixed and Adjustable rates (ARM)?

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With a Fixed rate mortgage your interest payment is locked in at a specific unchanging rate for the life of your mortgage. Your monthly payments will be the same for whatever term (15yr/30yr). An Adjustable rate (ARM) mortgage follows or lags the changing interest rates and the rate is adjusted up or down depending on current economic market conditions. An Adjustable rate (ARM) can be considerably lower than a Fixed rate mortgage. There are 3/1 and 5/1 ARM programs available. After careful analysis you and your Community West Mortgage loan officer can decide which best fits your needs and goals.