When buying a home for the first time, it’s important to understand the different types of mortgage loans available to you.
Fixed-rate mortgages: These loans have an interest rate that remains the same for the entire loan term. This type of loan is best for those who want predictable monthly payments.
Adjustable-rate mortgages (ARMs): These loans have an interest rate that changes over time, usually in response to changes in market interest rates. ARMs typically start with a lower interest rate than fixed-rate mortgages, but the rate can increase over time.
It’s important to shop around and compare different loan options to find the one that best suits your needs. A mortgage professional or financial advisor can help you understand the pros and cons of each type of loan and guide you through the application process.
