What is the main difference between a fixed-rate mortgage and an adjustable-rate mortgage?⬇️
•A fixed-rate mortgage has an interest rate that stays the same throughout the loan term. This means your monthly payment will also remain the same, unless you refinance. A fixed-rate mortgage is usually more predictable, stable, and easy to understand than an adjustable-rate mortgage. However, a fixed-rate mortgage may have a higher interest rate than an adjustable-rate mortgage at the start, and it may not benefit from any drops in the market interest rates.
•An adjustable-rate mortgage has an interest rate that can change at certain intervals after an initial fixed period. This means your monthly payment can also change depending on the direction and magnitude of the rate change. An adjustable-rate mortgage usually has a lower interest rate than a fixed-rate mortgage during the initial fixed period, which can range from three to 10 years. However, an adjustable-rate mortgage is usually more complicated, risky, and unpredictable than a fixed-rate mortgage, as it can increase significantly after the fixed period ends.
➡️ If you have any questions, please don't hesitate to text or call us! We can get you in touch with some amazing lenders, and we can also provide information about various down payment assistance programs and other helpful resources. Getting the best mortgage deal in Denver can be a tough task, but we are happy to help you and provide you with all the details of the process. We are in touch with you at every stage of the deal, so feel free to contact us at any time!
•A fixed-rate mortgage has an interest rate that stays the same throughout the loan term. This means your monthly payment will also remain the same, unless you refinance. A fixed-rate mortgage is usually more predictable, stable, and easy to understand than an adjustable-rate mortgage. However, a fixed-rate mortgage may have a higher interest rate than an adjustable-rate mortgage at the start, and it may not benefit from any drops in the market interest rates.
•An adjustable-rate mortgage has an interest rate that can change at certain intervals after an initial fixed period. This means your monthly payment can also change depending on the direction and magnitude of the rate change. An adjustable-rate mortgage usually has a lower interest rate than a fixed-rate mortgage during the initial fixed period, which can range from three to 10 years. However, an adjustable-rate mortgage is usually more complicated, risky, and unpredictable than a fixed-rate mortgage, as it can increase significantly after the fixed period ends.
➡️ If you have any questions, please don't hesitate to text or call us! We can get you in touch with some amazing lenders, and we can also provide information about various down payment assistance programs and other helpful resources. Getting the best mortgage deal in Denver can be a tough task, but we are happy to help you and provide you with all the details of the process. We are in touch with you at every stage of the deal, so feel free to contact us at any time!