Fixed-rate mortgages are offered in terms ranging approximately 30 years, with the 30-year choice being the most popular, says Kirkland. Paying the loan off over a longer period of time makes the month-to-month payment more affordable. But no matter which term you prefer, the interest rate will not alter for the life of the mortgage.
Under the terms of an adjustable-rate home mortgage (ARM), the interest rate you're paying might be raised or lowered occasionally as rates change. ARMs may a good concept when their rate of interest are particularly low compared to the 30-year fixed, especially if the ARM has a long fixed-rate period before it starts to adjust." Some examples of an adjustable-rate home loan would be a 5/1 ARM and or a 7/1 ARM," said Kirkland. wesley dutchman