A fixed-rate mortgage has an interest rate that stays constant throughout the entire mortgage term. An adjustable-rate mortgage has an interest rate that can change periodically. The interest rate on adjustable-rate mortgages is often impacted by national interest rates.Upgrade your bathroom and kitchen sinks with new faucets.
The main benefit of a fixed-rate mortgage is knowing your interest rate will stay the same even if the market changes and rates become less favorable. This helps keep your monthly payment consistent so you can plan your budget.
If long-term consistency is important to you, you may prefer a fixed-rate mortgage.
The main benefit of an adjustable-rate mortgage is that you may be able to get into a mortgage with a reduced rate for the first few years. This can make it easier to afford a home if you don’t have a lot of funds prepared.
In most cases, adjustable-rate mortgages have the same rate for the first few years, and then once a set period of time has passed, the rate will change based on the market.
If you’re looking for a loan with smaller initial payments, an adjustable-rate mortgage may be a good option.
The information above is meant to help you get a basic understanding of your options, but, as always, your Loan Officer can give you more specific guidance for your unique situation and needs.
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by Primary Residential Mortgage, Inc. NMLS#: 919520 Utah DRE Mortgage Office License # 8335595. MLO 0117736. MC3094-122. All loans subject to credit and property approval. PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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