What is the difference between fixed-rate and adjustable-rate mortgages?

Fixed-rate and adjustable-rate mortgages are two different types of mortgages when purchasing a home. A fixed-rate mortgage has an interest rate that remains the same throughout the entire life of the loan. This means that the payment you make each month will remain the same. An adjustable-rate mortgage (ARM) has an interest rate that changes over time. This means that the payment you make each month may go up or down depending on the interest rate. In New York, fixed rate mortgages are the most common type of mortgage; they are usually offered with terms ranging from 10-30 years. Adjustable rate mortgages are less common and usually have lower rates than fixed-rate mortgages. However, an ARM can be risky because your interest rate and payments can go up dramatically if the market changes. When deciding between a fixed-rate or adjustable-rate mortgage, it is important to consider your financial situation and tolerance for risk. If you are looking for a safer option, then a fixed-rate mortgage may be the best choice for you. On the other hand, if you are looking for a lower initial interest rate, then an adjustable-rate mortgage may be preferable. Ultimately, it is important to understand the differences between these two types of mortgages in order to make the best decision for your specific situation.

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What is the difference between fixed-rate and adjustable-rate mortgages?

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