Skip to Main Content
It looks like you're using Internet Explorer 11 or older. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. If you continue with this browser, you may see unexpected results.

Financial Literacy Resources

Find a variety of resources to help with your personal finances.

Housing, Car Loans, Insurance, Retirement

Types of Mortgages

According to Investopedia the two most common types of mortgages in the United States are fixed rate and variable rate (also called adjustable rate). With a Fixed Rate Mortgage, the interest rate does not change for the entire loan term. The distinguishing factor of a fixed-rate mortgage is that the interest rate over the time period of the mortgage is the same as when the mortgage is originated.

With a Variable Rate Mortgage the interest rate is not fixed. The interest rate adjusts periodically. Monthly principal and interest payments change according to a predetermined schedule throughout the life of the loan.