What is the difference between a fixed-rate and an adjustable-rate mortgage or variable-rate mortgage?

Author: Mock Webware |

A fixed-rate mortgage has an interest rate that remains the same throughout the life of the loan. In contrast, an adjustable-rate mortgage (ARM) or variable-rate mortgage has an interest rate that can fluctuate based on market conditions. With a fixed-rate mortgage, your monthly payments will remain the same, making budgeting and planning easier. An ARM may have a lower interest rate initially, but the rate can change over time, making it more difficult to predict your monthly payments. It's essential to consider your personal financial situation and future plans when deciding which type of mortgage is best for you. A mortgage specialist can help you understand the pros and cons of each type of loan and guide you through the process.



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