Adjustable vs. Fixed Rate Mortgages

 Adjustable vs Fixed Mortgage

Adjustable vs. Fixed-Rate Mortgages

Whether you’re a first-time or experienced homeowner, it’s important to review mortgage options. To make you a more informed homebuyer, here is an explanation of fixed-rate and adjustable rate mortgages (ARM).

Fixed-Rate Mortgage Pros and Cons

A fixed-rate mortgage is the most common type of loan. With a fixed-rate mortgage, there won’t be any variability which is attractive to buyers on a fixed income or with rigid budgets. However, this may not be the best option if interest rates are high at the time of purchase. Here are some of the benefits and drawbacks of a fixed-rate mortgage.



Adjustable-Rate Mortgage (ARM) Pros and Cons

An ARM is the opposite of a fixed-rate mortgage in that the interest rate fluctuates depending on the market. While their lower interest rate and payment makes them attractive to first-time homeowners, ARMs are typically more complex loans. Here are some of the advantages and disadvantages of an adjustable rate mortgage.



Choosing the Right Mortgage for You

Buying a home is a big deal and one of the most important financial decisions you’re likely to make. If you’re unsure about what type of mortgage to choose, consider talking with an expert at Butler Mortgage.

For more than 25 years, Butler Mortgage has worked with all types of homeowners in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

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