Mortgage Rates
Understanding mortgage rates, why they change, how they behave, and the different types of mortgage rates can be very confusing even to the seasoned professional.
This article will go over some of the different types of mortgage rates and will (hopefully) help you to better understand them.
Do you know the difference between a fixed rate and an adjustable rate mortgage? If you don't, you're not alone. Many people wouldn't be able to explain the differences between the two.
An adjustable rate mortgage (or ARM) is a home loan that is linked to an economic index. As that index goes up or down, so does your interest rate and consequently, your payments. This can be good or bad for borrowers, depending on various factors such as the life of the loan, amount of the loan, how long they expect to carry the loan, etc.
Fixed mortgage rates remain the same through the life of the loan. This means that your payments will be the same from beginning to end, unless you refinance the home at a different mortgage rate.
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