Are all mortgage loans the same? Or can making a choice between one particular type of mortgage get you in trouble if you aren’t careful. In the case of an adjustable rate mortgage versus a fixed rate mortgage it is true that all mortgages are not alike.
Of course in many cases the type of loan you can secure has to do with how good or bad your credit has been over the years. Your FICO score will often determine the loan you will be offered. Basically, FICO is an acronym for Fair Isaac Corporation and refers to your best-known credit score calculated by using a specific mathematical formula.
GMAC takes the FICO score into account and also explains the difference between a fixed rate mortgage and adjustable rate mortgage, depending on which loan you might be eligible for, “Most mortgage loans have either a fixed interest rate or an adjustable interest rate. With a fixed-rate mortgage, the interest rate never changes and your payments remain stable throughout the life of your loan. With an adjustable-rate mortgage (ARM), the interest rate changes at regular intervals