Mortgage Rates Personalized for You | Fremont Bank

A fixed-rate mortgage is a home loan that has a constant interest rate for the lifetime of the loan. Fixed-rate mortgages are typically offered in 10-, 15-, 20-, 25-, and 30-year terms—giving home buyers the security of a predictable monthly payment. Shorter-term fixed-rate loans typically carry the lowest interest rates and are more desirable if you're comfortable with a larger monthly payment.

An adjustable rate mortgage (ARM) is a loan that offers an initial period of fixed interest that then changes or adjusts at a specified interval. Typically, you'll see an ARM expressed as two numbers. For example, a 5/1 ARM has a fixed interest rate for the first five years that then adjusts based on market rates every year after that. An ARM tends to have a lower initial interest rate than a fixed-rate mortgage. However, it does come with a certain amount of unpredictability. That's because when an ARM enters its adjustable period, its interest rate may trend up or down depending on the state of the market.