If you’re looking to buy a home, you’ve probably heard fixed-rate and adjustable rate thrown around a lot when it comes to mortgages. Let’s review the difference between the two!
So a fixed-rate mortgage has the same interest rate every month. You know exactly what your mortgage payment is going to be for every month of your loan because it doesn’t change.
But an adjustable rate mortgage has an interest rate that can change. The interest rate changes from time to time due to the market, so your monthly payment will change over time.
Both of these mortgage types have their advantages and disadvantages. If you’re wondering which one is best for you, I recommend talking with a lender as they can answer all of your questions.