Transform Financial Future Understanding Mortgage Rates Today

Types of Mortgage Rates

There are primarily two types of mortgage rates: fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages maintain the same interest rate throughout the life of the loan, providing stability and predictability in monthly payments. On the other hand, ARMs have interest rates that can change periodically based on an index, which can result in lower initial rates but potential increases over time².