Not all fixed-rate real estate loans created equal

Several types exist in today's market

Q: Your Web site contains 36 articles on adjustable-rate mortgages (ARMs), which account for about 25 percent of the market, and zero articles on fixed-rate mortgages (FRMs), which account for the other 75 percent. Is this not a little unbalanced? A: Ouch, you are right. My only excuse is that ARMs are more complicated and borrowers need more help with them, but that does not justify a score of 36 to nothing. This article is a small gesture of atonement. An FRM is a mortgage that has no provision for changing the interest rate. Hence, the rate stated in the note is fixed for the entire term of the loan. Usually, the term "FRM" also means that the payment is fixed for the life of the loan and pays it off over the term. This should be (but usually isn't) called a "level-payment fully amortizing FRM" to distinguish it from other types of loans that have a fixed rate but not a fixed payment. For example, one of the earliest types of fixed-rate mortgages was repaid with equal monthly paym...