A Fixed-rate mortgage protects you against rising rates since the interest rate remains the same for the entire term of the loan.  The term means the length of time your loan is amortized. [ 15 or 30-year terms] are common lengths to choose from.

The lower term options have lower interest rates but higher monthly payments.  The higher term options have higher interest rates but lower monthly payments.

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a significant future pay increase, or the current interest rate on a fixed-rate mortgage are too high for a borrower to qualify.

If you currently have an FHA mortgage, we may be able to help you reduce your interest rate and lower your monthly mortgage payments with an FHA streamlined refinance. A streamlined refinance requires limited borrower credit documentation for underwriting.  This may also be the right solution if you want to convert your FHA ARM to a FHA fixed-rate loan.