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Whats the difference between a fixed-rate mortgage and an ARM?

April 26, 2017arm difference fixed-rate mortgage

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Whats the difference between a fixed-rate mortgage and an ARM?

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Fixed-Rate Mortgage (30 yr. 15 yr.) A fixed-rate mortgage is one where the borrowers payment does not change over the life of the loan. ARM (3yr. 5yr. 7yr.) An ARM is an Adjustable Rate Mortgage that changes periodically to coincide with current interest rates. Which may go up or down but not exceeding a set cap.