Whats the difference between a Fixed Rate loan and an ARM (adjustable-rate mortgage)?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest rate is usually fixed for an initial period, typically 1, 3, 5, 7 or 10 years and then changes annually. While the monthly payments on a fixed-rate mortgage are relatively stable, payments on an ARM will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
