What is the difference between a flat tax and a tiered tax system

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage Introduction: The Mortgage Landscape Hello, everyone! Welcome to our video on the differences between fixed-rate mortgages and adjustable-rate mortgages. As you embark on your homeownership journey, understanding the nuances of these mortgage types is crucial. So, let's dive in! Section 1: The Foundation of Stability: Fixed-Rate Mortgages Fixed-rate mortgages, as the name suggests, come with an interest rate that remains constant throughout the loan term. This means your monthly mortgage payment remains unchanged, providing a sense of stability and predictability. Whether it's a 15-year or a 30-year fixed-rate mortgage, you can plan your budget with confidence, knowing what your payment will be. Additionally, fixed-rate mortgages are often favored when interest rates are low, as they lock in that favorable rate for the long term. Section 2: The Dynamic Alternative: Adjustable-Rate Mortgages On the other hand, adjustable-rate mortgages, or ARMs, have an interest rate that can fluctuate over time. Typically, ARMs have an initial fixed-rate period, often ranging from 3 to 10 years. During this period, the interest rate remains stable, often at a lower rate compared to fixed-rate mortgages. However, once the fixed-rate period ends, the rate adjusts periodically, usually annually.