The difference between a fixed rate and an adjustable rate mortgage (ARM) is that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down. Many ARMs will start at a lower interest rate than fixed rate mortgages. Because of this, often times, buyers that aren't planning to own the property for very long, will opt for an ARM.
More info at the Consumer Financial Protection Bureau site
Choose Your Path:
💻 Just got your offer accepted? Fill out our application and upload your docs. We'll get on it as soon as it hits our inbox.
📞 Wanna talk through stuff first? Book 15 minutes with our team. We'll walk through what you need and answer any questions.