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In this article

1. What is the difference between and Adjustable Rate Mortgage (ARM) and a Fixed Rate Mortgage in South Carolina
2. What is a Fixed Rate Mortgage in South Carolina?
3. What is an Adjustable Rate Mortgage in South Carolina?

What is the difference between and Adjustable Rate Mortgage (ARM) and a Fixed Rate Mortgage in South Carolina

When buying a home in South Carolina, choosing the right type of mortgage loan is just as important as choosing the best house. One of the first decisions that you will have to make is whether to choose a fixed-rate mortgage or an adjustable-rate mortgage (ARM).

Both will allow you to get the house of your preference, but each one comes with unique advantages and disadvantages. And with all the conflicting information floating around, you can bet that the decision will not be an easy one. But thanks to our highly specialized staff, we can make it a piece of cake for you. Just talk to us, and our South Carolina mortgage experts will advise you appropriately based on your income, debts, home value and many other factors.

What is a Fixed Rate Mortgage in South Carolina?

Our crew will tell you that with a fixed rate, you will be charged the same interest rate over the whole duration period of the loan. Meaning your monthly mortgage payments will be the same each month. Most fixed rate mortgage loan holders like it because it is very predictable and not subject to economic ups and downs. The only problem is that if interest rates drop you will not be among those whose monthly payments will decrease.

What is an Adjustable Rate Mortgage in South Carolina?

An adjustable rate mortgage, or ARM, has flexible interest rates. Lenders usually charge very low rates in the initial stages of the loan and then increase gradually with time. Even so, the rate charged on your loan will drop when market rates drop. But it will also increase when the market rates increase. So you might end up paying varying amounts for each month, depending on the terms of your loan and the general real estate climate.

While South Carolina’s real estate market is not as volatile as other states, it is certain that at one point your interest rate will change if you take out an adjustable rate mortgage loan. But a fixed rate mortgage loan will hinder you from taking advantage of low-interest rates. The best way to go about it? Talk to us, and we will give you information for both fixed rate and adjustable fixed rate mortgage in South Carolina.