What are fixed rate mortgage (FRM) and adjustable rate mortgage (ARM)?

A fixed rate mortgage has a fixed interest rate over the life of the loan. Your payments will be steady. With an adjustable rate mortgage, there is an initial fixed rate that is lower than the rate of comparable fixed rate mortgages, for a certain period of time. After this period, the rate is adjusted every year based on an index.  For example, a "5/1 ARM" is fixed at an initial low rate for the first 5 years, and then adjusts every year.

Find out the loan rate you deserve and how it's created-before you visit your lender. Use this interactive tool that's based on the same data your lender uses to determine your rate-your credit report, score and debt analysis.

Click here to KnowYourLoanRate

 

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