A fixed-rate mortgage is the most common mortgage loan. It is a fully amortized mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust. Fixed-rate mortgages are characterized by loan amount, interest rate and term. With these values, the monthly repayments can be calculated.
An adjustable-rate mortgage, ARM is a mortgage loan where the interest rate on the note periodically adjusts based on an index which reflects the cost to the lender of borrowing on the credit markets.
VA loans are mortgages that are backed by the Veteran's Administration. These mortgages feature low or no down payment, no private mortgage insurance requirements, limited closing costs and fees and a fixed rate. You can determine eligibility and request a Certificate of Eligibility on the Department of Veteran Affairs website.
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