The Anatomy of Choosing a Mortgage Product – Chase

So, you're about to buy a home? Congrats! But before you pop that champagne, you'll want to chose between a fixed rate or an adjustable rate mortgage The most common type of home loan is a fixed rate mortgage

This product's interest rate is locked in for the life of the loan, usually between 10 and 30 years Fixed rate mortgages offer stability for long term home owners, but you may end up paying a higher interest rate than an adjustable rate mortgage Which brings us to our second option; the adjustable rate mortgage, or ARM The ARM's interest rate is fixed for 5 to 10 years and then varies from year to year for the remaining loan term ARM interest rates vary periodically, depending on market conditions

ARMs tend to offer lower intial payments, making them an ideal short term solution but susceptible to market based risks over time Talk to your home lending advisor about which option is best for you