It is possible to structure home loan rates and there are a lot of ways to do it. Then again, the two most popular kinds of loan structures are:

• Adjustable Rate Mortgage(ARM)
• Fixed Rate Mortgage (FRM)

On the other hand, the kind of mortgage rate that one may opt to use will rely on the situation that he may be in. At any rate, the interest rate is the additional sum that the loan costs you in due course and it differ as per the original rate or in keeping with the adjustments in the index rate attached to your loan. Moreover, the FRM will have invariable interest rate until the last day of the scheduled repayment of the loan while the ARM will vary in accordance with a prearranged index rate. [Read more…]