| The interest rate is fixed, and remains
the same for the entire life of the loan. The industry
standard for this type of loan is 30 years, but 15 and
20 year loans are also available. |
The interest rates starts at a specific
amount, but adjusts over the course of the mortgage. The
amount of interest you pay varies each year, but is capped
at a certain percentage above the original commitment
level. |
The interest rate is calculated as if it
were a fixed-rate mortgage, but after a short period of
time (typically around 5 years) the entire mortgage payment
is due. These are good for people who know they will be
selling their homes after a short period of time. |
