The journey to homeownership involves making numerous important decisions, not the least of which is choosing the type of mortgage that best fits your financial situation and long-term goals. This article aims to provide an in-depth comparison of the two main types of mortgages—fixed-rate and adjustable-rate—assisting you in making an informed decision.
Understanding Mortgages
Before diving into the specifics of fixed-rate and adjustable-rate mortgages, it’s crucial to grasp the fundamentals of what a mortgage is. A mortgage is a loan provided by a financial institution or lender to assist a borrower in purchasing a property. It’s like a contract between the borrower and the lender, where the borrower agrees to repay the loan, plus interest, over a set period, called the loan term.
