asked 221k views
2 votes
A mortgage is a type of installment loan. How does an adjustable rate mortgage work?

1 Answer

4 votes

Answer:

A fixed-rate mortgage has a set interest rate for the entire duration of the loan (typically 15 or 30 years). It's a type of installment loan, similar to a student loan or personal loan, with fixed monthly payments. An adjustable-rate mortgage (ARM) has an interest rate that can change during the course of the loan.

answered
User Yeesterbunny
by
8.4k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories