Is a variable rate feature the same as a adjustable rate mortgage?
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I am in the process of getting a loan for a house. I do not plan to sell it.On the paper work I see checked “your loan does contain a variable rate feature. discloures about the variable rate feature have been provided to you earlier.” It came with a booklet on adjustable rate mortgages. no where else in the paper work does it talk about a ARM. It has number of payments such as 24 @ 1,224.30 then 335 @ 1,249.77 and 1 @ 1,246.11.
So is the variable just meaning a change in payments listed above or that my interest rate and payments can change other then what is listed?
I specificaly told them I wanted a fixed rate.
The terms ‘variable rate mortgage’ and ‘adjustable rate mortgage’ usually mean the same.
A *temporary buydown mortgage*, an adjustable rate mortgage with an initially discounted interest rate which gradually increases to an agreed-upon fixed rate within 2 years, may have 24 initial payments at a discounted rate. Ask your lender if this is a buydown.