Revolutionize Your Finances Understanding Mortgage Rates Today

Types of Mortgage Rates: Fixed vs. Adjustable

When exploring mortgage options, you'll encounter two primary types of interest rates: fixed and adjustable. Fixed-rate mortgages offer stability with a consistent interest rate throughout the life of the loan, making budgeting predictable and straightforward. In contrast, adjustable-rate mortgages (ARMs) start with a lower initial rate that adjusts after a set period based on market conditions. While ARMs can offer lower initial payments, they carry the risk of increasing rates over time. It's crucial to evaluate your financial situation and risk tolerance when choosing between these options.