Homeowner Education

A 40-year, fixed-rate mortgage is a loan product that permits the homebuyer to buy a home and make fixed, equal monthly payments over 40 years.

A 3/27 adjustable-rate mortgage is a 30-year loan product that has a fixed introductory rate for the first three years.

A 2/28 adjustable-rate mortgage (ARM) is a loan product that combines a short fixed rate period with a much longer adjustable term.

A 3/1 adjustable-rate mortgage (ARM) is a 30-year mortgage product that carries a fixed interest rate for the first three years and a variable interest

An adjustable-rate mortgage, also known as an ARM, allows the homebuyer to keep the same interest rate for a certain amount of time.