The type of mortgage you choose determines how your interest rate is calculated, which affects your monthly payment and the total cost of your loan.

Fixed-Rate Mortgages

With a fixed-rate mortgage, your interest rate remains the same for the entire life of the loan. This provides a predictable monthly payment that never changes. It's the most popular and straightforward option, especially for buyers who plan to stay in their home for a long time.

Adjustable-Rate Mortgages (ARMs)

An ARM typically has an initial period where the interest rate is fixed. After this period, the rate can change, either up or down, based on market conditions. ARMs can be riskier but may offer a lower initial rate. Use our Loan Calculator to compare potential payments.