Adjustable rate mortgages start with an initial fixed rate. This initial rate lasts for a set period of years. ARMs typically offer a lower initial rate when compared to conventional loans, but do come with some unpredictability when the rate adjusts.
Conventional loans, or fixed rate mortgages, offer an easy-to-understand way to finance any home. Your rate and payments stay the same for the life of the loan. A 15-year conventional loan means that payments are structured so that the loan will be paid off in that time frame.
Don’t forget about these helpful resources, which you can use to help you make decisions about your homeownership journey.
Use our mortgage calculators to help you get the big picture of your finances and how they fit into your homeownership goals.