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Your mortgage interest rate is important to know because it influences how much you pay each month — and in total. A key factor in determining your interest rate is whether you have a fixed-rate mortgage or an adjustable-rate mortgage.
In the simplest terms, a fixed-rate mortgage means the interest rate on your home loan never changes. On the other hand, the interest rate on an adjustable-rate mortgage can fluctuate throughout the loan term depending on market conditions. While one interest rate type isn’t necessarily better than the other, your financial situation and goals will help you decide which to go with.
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