What is the difference between a fixed-rate and adjustable-rate mortgage (ARM) loan?
A fixed-rate home loan has a rate that is fixed, meaning that it does not change for the life of the loan. These loan options are much safer and predictable than ARM options, and have terms that range from 10-30 years, with the 30 year fixed option being the most common
An adjustable-rate loan will have an initial period where the rate is fixed, after which it will change periodically for the life of the loan.
If you’re confident which side you fall on, go for it, otherwise talk it through with your Loan Guide.
An adjustable-rate loan will have an initial period where the rate is fixed, after which it will change periodically for the life of the loan.
If you’re confident which side you fall on, go for it, otherwise talk it through with your Loan Guide.
Updated on: 13/04/2023