Finding The Best Mortgage: Your Guide to Fixed-Rate Vs. Adjustable Rate Home Loans
- What’s a fixed-rate mortgage?
- What’s an adjustable-rate mortgage?
- What are the differences between fixed-rate and ARM?
- Pros & cons of fixed-rate mortgages
- The bottom line
What’s a fixed-rate mortgage?
Who it’s best for
How to get a fixed-rate mortgage
What’s an adjustable-rate mortgage?
Who it’s best for
How to get an adjustable-rate mortgage
What are the differences between fixed-rate and ARM?
Pros & cons of fixed-rate mortgages
- Set interest rates over the life of your loan, whether that’s 15, 20, or 30 years
- Reliable monthly payments
- Locked into whatever interest rates are set at the time of signing your loan, unless you consider refinancing the loan later for lower rates
- Higher interest rates than ARMs
Pros & cons of adjustable-rate mortgages
- Interest rates may be lower than fixed-rate mortgages for the first several months or years of the loan
- Initial lower rates can make your monthly payments more affordable
- Your rates will increase after the initial rate period ends, and may continue to fluctuate thereafter
- Budgeting can be made more difficult with varying interest rates
- Many ARMs also have margins, which add an extra few percent to the index of interest rates — meaning you’ll likely pay more than the going interest rate at any given time
The bottom line
Reclaim Up to $610/Year in Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But, who has the time to look around for around a new company?
A website called CarInsurance.net makes it super easy to see if you’re getting the lowest price. All you have to do is enter your ZIP code and your age, and it’ll show you your options.
Using CarInsurance.net, people have saved up to $610 a year.
It takes just a few minutes to see how much CarInsurance.net could put back in your pocket. And the best part? Because we’re driving less, some insurers are slashing prices this month.