PBA Tip of the Day brought to you by Steve and Connie Moss with Future Financial, Inc (623) 551-4734.
What is the difference between an adjustable rate mortgage and a fixed rate mortgage? Steve and Connie have the answer!
A fixed rate mortgage keeps the same interest rate for the life of the loan, typically 15-30 year terms. This keeps your monthly payment for principal and interest steady and predictable over time. Adjustable rate mortgages also known as ARMs, have interest rates that change based on the market. This will fluctuate your payment. Most adjustable rate mortgages are based on a 30 year term and generally start with an initial fixed interest rate for a stated period of time, usually 5,7 or 10 years. For more information on the right mortgage for you, give Steve or Connie a call today!