Sentences with phrase «amount than a fixed rate mortgage»

An ARM may come with a lower monthly payment amount than a fixed rate mortgage, which means you may qualify for a larger mortgage.

Not exact matches

The initial ARM interest rate is usually lower than that of a fixed - rate mortgage, and if average interest rates are low, your interest rate and the amount you pay every month will be, too.

In return for the greater risk, borrowers receive a lower initial rate than a fixed rate mortgage of the same amount and duration.

«Interest rates for 30 - year fixed mortgages are now almost a half percentage point higher than the record low set in mid-November,» says Frank Nothaft, Freddie Mac's chief economist, Freddie Mac, «which for a $ 200,000 conventional loan amounts to $ 50 more in monthly payments.»

Adjustable - rate mortgages may offer lower interest rates than fixed loans initially, but they adjust after a certain amount of time, such as two, five, seven or 10 years.

If your existing home amount is more than 80 % of your home's current value, an FHA refinance loan may provide lower mortgage rates, converting your current home loan from an adjustable to fixed rate (ARM) mortgage.

An ARM may come with a lower monthly payment amount than a fixed - rate mortgage, which means may qualify for a larger mortgage

With a fixed rate mortgage, the interest doesn't change from month to month, so you are paying a consistent amount, generally much lower than even the low variable rates.

Lenders generally charge lower initial interest rates for ARMs than for a fixed - rate mortgage for the same amount.

This makes the ARM easier on your pocketbook at first than a fixed - rate mortgage for the same amount.