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Fixed rate mortgages and Adjustable rate mortgages (ARM) are the 2 most common rate types for mortgage loans. Fixed rate mortgages are usually a little higher than adjustable rate mortgages but they can never change once you close. Some homeowners prefer fixed rate mortgages because the non-changing rate of interest ensures that their mortgage payments will always be the same.
Adjustable Rate Mortgages may offer a lower interest rate, and can be fixed for an initial period then begin to fluctuate on a monthly basis. In the case of a "5 Year ARM" (a common adjustable mortgage type), the loan is a 30 year loan, fixed for the first 5 years and then turns into an adjustable for the remaining 25 years. A borrower might decide on a loan like this if they plan to sell the home in a few years; it allows them to take advantage of the lower rate, knowing they'll sell before the adjustable portion kicks in.
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