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Types of Mortgages

Basically, there are two types of mortgages:

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.

Adjustable Rate Mortgage.

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.

If you're not sure which type is best for you, we can help you in the section below.

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