Loan Programs: Fixed vs. Adjustable Rate Mortgages

Fixed vs. Adjustable Rate Mortgages

One choice you’ll have to make when it comes to your home financing is whether a fixed vs. adjustable rate mortgage is right for you. The bulk of loans will fit into one of these two categories, It’s important to understand how they work to determine the best option for you.

Adjustable Rate Mortgages (ARM)

With an adjustable-rate mortgage (ARM), your interest rate is fixed for a certain period of time (most commonly 3, 5, or 7 years) and will adjust periodically based on market conditions thereafter. The most common loan terms for adjustable rate mortgages are 3/1, 5/1 and 7/1 products. ARM products are typically the best fit for borrowers that don’t intend on owning a property for very long, intend on refinancing their mortgage at some point, or are comfortable with variable payments.

Fixed Rate Mortgages

A fixed-rate mortgage has an interest rate that is locked in for a certain period of time and will not change. When the loan term has ended, the mortgage will be paid off. A fixed-rate mortgage can be 10, 15, 20, or 30 years. A 30-year fixed is the most common because it allows your mortgage payment to be the lowest. Fixed-rate mortgages are commonly the best fit for borrowers that plan to stay in their property for a long period of time and want stability in their monthly payment.



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Visalia, CA 93291

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Brendan John Farrell
NMLS #294123
Licensed in CA


© 2021 American Pacific Mortgage Corporation. For informational purposes only. No guarantee of accuracy is expressed or implied. Programs shown may not include all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions may apply. Equal Housing Opportunity. NMLS# 1850
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