What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed-rate mortgage is a home loan with an interest rate that remains constant throughout the loan term. This means the monthly mortgage payments remain the same over time, providing stability and predictability. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically, typically after an initial fixed-rate period. The rate adjustments are based on market conditions and can result in fluctuating monthly payments.
What are closing costs?
Closing costs are the expenses associated with the purchase or sale of a property. They typically include fees for property inspections, appraisals, title searches, loan processing, insurance, and legal documentation. Buyers and sellers usually share these costs, although they can be negotiated as part of the sales agreement.
What is a real estate agent?
A real estate agent is a licensed professional who helps buyers and sellers navigate the process of buying or selling properties. They have expertise in the local real estate market, assist with property searches, provide guidance on negotiations, and handle paperwork and legal requirements.