Many homebuyers begin their search for a
mortgage
by comparing
interest rates.
But mortgage interest can
be calculated two ways — at a fixed rate or an adjustable
rate. That means that two mortgages with the same rate may not
require you to pay the same total amount in interest over the
mortgage’s term.
Before you apply for a mortgage, you need
to decide which method for figuring mortgage interest will work
best for you.
Fixed-rate mortgages
and
adjustable-rate mortgages
(ARMs)
offer different advantages and disadvantages.
