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Whats the difference between a Fixed Rate, an Adjustable Rate and a Fixed-to-Adjustable mortgage?

April 26, 2017Adjustable fixed mortgage rate

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Whats the difference between a Fixed Rate, an Adjustable Rate and a Fixed-to-Adjustable mortgage?

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With a fixed-rate mortgage your interest rates and monthly payments remain unchanged for the life of the loan. Adjustable-rate loans have payments that can go up or down depending upon market conditions. Fixed-to-adjustable loans offer a combination of fixed and adjustable mortgage. Typically, rates are fixed for a certain number of years and then the loan converts to an adjustable loan.