Here is a great post on the blog QVisory about the difference between a fixed and adjustable rate mortgage.
It’s mortgage rates 101: the difference between a fixed and adjustable rate home loan. Just like it sounds, a fixed rate mortgage stays at the same interest rate for as long as you are paying down the loan, regardless of whether interest rates, in general, go up or down.
Conversely, an adjustable rate mortgage can go up (and sometimes down) based upon the overall interest rate market. Sometimes it is possible to get an adjustable rate mortgage at a much lower interest rate than a fixed rate mortgage, but the rate could skyrocket in a matter of a few years.
Also, there is an explaination of what “Points” on a mortgage are. Useful information for first time homebuyers and homeowners alike!
Thanks to my #1 Client Mary for sharing this with me on Google Reader!
