Fixed-rate vs. Adjustable-rate Mortgages

Fixed-Rate Mortgages VS. Adjustable–Rate Mortgages Fixed-Rate Mortgage – A loan's interest rate stays the same, despite inflation and other factors Adjustable-–Rate Mortgage - Loan Interest rates are adjusted periodically based on market factors Fixed-Rate Mortgage - Monthly payments do not change, making budgeting easier Adjustable–Rate Mortgage – Initial rates are lower than those of fixed-rate mortgages Fixed-Rate Martgage - When rates fall, borrowers can refinance to DO take advantage of the changing rate environment DON'T Adjustable-Rate Mortgage – When rates refinance to take advantage borrowers don't need to Fixed-Rate Martgage - Qualifying for a loan can be difficult when interest rates are higher Adjustable-Rate Mortgage – Rates can rise significantly over the course of the loan, resulting in greater expenses Castle & Cooke MORTGAGE, LLC° NMLS #1251 http://www.bankrate.com/finance/mortgages/arm-vs-fixed-rate-mortgage–laspx http://www.nvestopedia.com/articles/pf/05/031605.asp