Initial interest rate

"What is initial interest rate? How long will mine stay unchanged?"

A mortgage has a defined rate and fixed term length. This is different than the amortization, which is usually 30 years. For example, under a 2 year fixed rate term, the rate is fixed for two years.

Different lenders have different Adjustable Rate Mortgages. Each has specified limits on how much the interest rate can change at the initial change date, how much it can change at any subsequent adjustment date, and how much it can adjust overall. Make your mortgage professional explain your loan program completely.

Be sure to consult with your mortgage professional. Get a clear explanation as to what the fixed period is. Many borrowers will just hear the term 30 year loan, and assume that it will be fixed for the full 30 years.