Get Loaned - Conventional Mortgage Information
In the United States there are actually many different mortgage loan types. There are, however, two basic types and they are Adjustable Rate Mortgages (ARM) and Fixed rate Mortgages (FRM). With an ARM, the interest rate on the loan is fixed for a length of time, and then it adjusts to a market index. The Prime Rate and the Treasury Index are two of the more popular indices in the United States. With FRMs the payment rate doesn't change because the interest doesn't move for the life of the loan, most typically 15 or 30 years.