FIXED RATE MORTGAGE

A fixed rate mortgage is a mortgage rate in which the interest rate remains constant for the entire term of the loan.

This means the principal and interest portion of your monthly payment do not change over time, regardless of market interest rate fluctuations.

Fixed interest rate may be particularly appropriate for clients who:

• Value predictable monthly expenses
• Plan to stay in the home long term
• Prefer insulation from market volatility

A fixed-rate mortgage is not simply about locking a rate — it is about locking certainty.

ADJUSTABLE RATE MORTGAGE ( "ARM")

An adjustable interest rate ("ARM") is a mortgage rate that is fixed for an initial period and then may adjust up , adjust down  or  stay unchanged at predetermined intervals according to a benchmark index plus a margin stated in borrowers written contract with the lender. Common initial fixed periods are for 3, 5, 7 and 10 years.

An adjustable interest rate may be appropriate for clients who:

• Plan to sell or refinance before the adjustment period
• Expect income growth over time
• Want a lower initial interest rate compared to a fixed mortgage

An adjustable interest rate can be a thoughtful tool when aligned with a defined time horizon and broader financial plan.