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The 30-year and 15-year fixed-rate loans are the most popular type of loan.
Clients who plan to stay in their home for a long period of time will find a fixed-rate mortgage is an excellent way to lock in a low interest rate for the life of the loan.
An adjustable-rate mortgage is a home loan with a variable interest rate.
With an ARM, the initial interest rate is fixed for a period of time. After that, the interest rate applied on the outstanding balance resets periodically, at yearly or monthly intervals.