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 Mortgage and an Adjustable-Rate Mortgage (ARM)?

April 26, 2017adjustable-rate arm fixed-rate mortgage

0

Posted

What is the difference between Fixed-Rate Mortgage and an Adjustable-Rate Mortgage (ARM)?

1 Answer

0

Posted

A fixed rate mortgage is a loan where the interest rate charged and therefore, principal and interest payment, never change during the life of the loan. An Adjustable Rate Mortgage (ARM) is a loan where the interest rate and thus the monthly payment can change periodically. The changes in the interest rate are tied into the market rates that exist at the time the rate is subject to change.