Fixed Rate Mortgages VS. ARM (part 1)
With Fixed Rate Mortgage, your interest rate is set once you take out the loan and remains the same through the duration of your payments. With an adjustable rate mortgage or ARM, like arm! Your interest may go up or down, so actually, which one of it is better? This can get pretty in depth, so let’s start with the Fixed Rate Mortgage. They offer a consistent mortgage payment regardless of what happens in the economy. Making it simple to understand and budgeting much easier. One downside is 30 year fixed rates are typically higher than most ARM products. If you decide to refi down the line there are costs in some way associated with refinancing and if rates are higher at that time it won’t make sense. We will talk about Adjustable Rate Mortgages in Part Two, but if you have any questions lets share a call!
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