What is the difference between fixed and adjustable rate mortgages?

A fixed rate mortgage has an interest rate that will remain the same throughout the life of the loan.

An adjustable rate mortgage loan has an interest rate that can change throughout the life of the loan. Sometimes the adjustment will occur one time and other times it could occur multiple occasions throughout the life of the loan. Often times, adjustments will be dependent on market conditions at the time that the adjustment is made.

Category: Home Loans