What is The Difference Between a Fixed Rate and an Adjustable-Rate Loan

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 changes periodically, typically in relation to an index.

 

While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan 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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s