Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the Difference Between Fixed Rate and Adjustable Rate MBS?

April 26, 2017Adjustable fixed MBS rate

0

Posted

What is the Difference Between Fixed Rate and Adjustable Rate MBS?

1 Answer

0

Posted

• Just like a homeowner has a choice of mortgages, the mortgage investor has a choice of mortgage securities to buy. Fixed-rate securities pay a fixed interest rate for the term of the security. Adjustable-rate mortgages (ARMs) securities have an interest rate that changes periodically based on short-term interest rates.