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

In New Hampshire, the difference between a fixed-rate and an adjustable-rate mortgage mainly lies in the interest rate. A fixed-rate mortgage has an interest rate that stays the same throughout the life of the loan. This means that your monthly mortgage payment will remain the same throughout the term of the loan, no matter what happens to interest rates in the market. This can make budgeting and planning easier since you know what your payment will be. On the other hand, an adjustable-rate mortgage (ARM) typically has an interest rate that changes over time. This means that, depending on market conditions, your monthly mortgage payment can change. Adjustable-rate mortgages usually start with a lower initial interest rate than fixed-rate mortgages. However, this lower rate may only last for a certain period of time, usually three to five years, and then the rate can change depending on the current market conditions. When considering a fixed-rate or adjustable-rate mortgage, homeowners should consider their budget and financial situation before making a decision. They should also be prepared for the possibility that their mortgage payments may increase or decrease depending on the mortgage option they choose.

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

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