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In many cases, the rate remains fixed for an initial period, and then it is adjusted on a yearly basis. For example, with a 31 ARM loan, the 3 in the name indicates that the loan has a fixed interest rate for the first three years. Afterward, the rate is adjusted on a yearly basis, as indicated by the 1. Conventional mortgage. This is a mortgage loan that is issued with no government backing. A conventional mortgage might come with a fixed rate or an adjustable rate.
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