The benefit is that it offers predictable payment terms and the fixed interest rate allows the size of your monthly payment to stay the same year after year. Adjustable-rate mortgage (ARM). With this type of mortgage, interest rates change from time to time to reflect current market conditions. In many cases, the rate remains fixed for an initial period, and then it is adjusted on a yearly basis.
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Conventional mortgage. This is a mortgage loan that is issued with no government backing.
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