What is the difference between a fixed rate and an adjustable rate mortgage?

A fixed rate mortgage is a type of loan that has an interest rate that remains the same throughout the duration of the loan. This means that your monthly payments will stay the same each month, regardless of the current market interest rates. The interest rate for this type of mortgage is usually higher than adjustable rate mortgages. An adjustable rate mortgage (ARM) is a type of loan with an interest rate that can change periodically, usually once a year. This means that the rate can go up, or down, depending on the current market rate of the loan. With this type of mortgage, the rate you pay is usually much lower than a fixed rate mortgage, but the risk of the rate increasing is much higher. Additionally, ARMs usually have caps on how much the interest rate can change, so you are protected from the rate rising too far. In New York, mortgage law sets forth the basic laws that govern mortgages, including both fixed and adjustable rate mortgages. These laws include the types of lenders that may provide mortgages, the duration of the term of the loan, the amount of money you can borrow, and any other restrictions or requirements. It is important to research and understand the mortgage laws of New York before signing any loan agreement.

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What is the difference between a fixed rate and an adjustable rate mortgage?

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