The rate remains the same during the duration of the loan. This option keeps monthly payments fixed and can be planned. So, this is perfect for borrowers planning to stay for a longer time in their home and wants a regular payment option.

The rate remains the same for the first 5, 7, or 10 years of the loan. Then, the rates get adjusted up or down once a year as per market conditions. This option allows getting the lowest rate possible and is perfect for borrowers planning to move or refinance before the fixed-rate period is over.