What is the difference between a fixed-rate and a variable-rate mortgage?

In Pennsylvania, there are two main types of mortgages, fixed-rate and variable-rate. A fixed-rate mortgage is a loan with an interest rate that remains the same throughout the life of the loan. This means that no matter what happens to the interest rate market, your monthly payment will stay the same. This type of loan is attractive to those who plan on staying in their home for a long period of time. On the other hand, a variable-rate mortgage is a loan with an interest rate that can fluctuate depending on the market. This means that the interest rate and monthly payment can go up or down depending on the current market. This is a popular option for those who plan to stay in their home for a shorter period of time, as they can benefit from changes in the market. When deciding between a fixed-rate and variable-rate mortgage, it is important to consider your plans for the future. If you plan to stay in your home for a long period of time and value stability, then a fixed-rate loan might be the best choice. But if you plan on selling soon, then you may want to choose a variable-rate loan to take advantage of potential savings. Talk to a knowledgeable mortgage professional to decide which type of loan is best for you.

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What is the difference between a fixed-rate and a variable-rate mortgage?

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