Understanding Different Types of Mortgages

While choosing a mortgage, everyone’s main focus is on the interest rates and the amount of fee charged on that mortgage.

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1. Fixed rate mortgage (FRM) 2. Variable rate mortgage (VRM) or Adjustable Mortgage Rate (ARM)

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In a fixed-rate mortgage, the interest rate remains constant/fixed for a few years which then, in 2 to 5 years bracket, changes in the variable rate.

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The interest rate on the Variable Rate Management can change anytime. To be on the safer side, always make sure that you have some savings aside for the payments if the rates increase.

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