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Fixed Rate Mortgages.
This type of mortgage is also sometimes called a conventional mortgage.
With a fixed rate mortgage, you pay the same interest rate the entire
term of the mortgage, which usually ranges from 10 to 30 years.
The name of this mortgage is sometimes shortened to ARM. With an ARM,
the interest rate is pegged to the rates for US Treasury securities. Your
interest goes up and down, allowing you to take advantage of lower payments
during economic periods when interest rates are low. Some ARMs give you
the option to convert to a fixed rate mortgage later, for a fee much lower
than the typical fees for appraisals and credit associated with refinancing.
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