There are many permutations and combinations of these two types of mortgages. Some loans fix the rate of interest for periods of three or five years, and then the rate is allowed to change.
There are still other mortgage options that allow you to choose how and when you would like to pay. So you could pay back the entire amount in one go, or you could make more than a single payment, or even just pay the interest for that month. These mortgage options, if used wisely, can save you a good deal of money. However, if for instance, you make a habit of paying only the interest amount, it could spiral into a lot more expense than you had originally bargained for.
So even while looking at the various kinds of mortgages, ensure that you find a mortgage that meets all your specific requirements. When shopping around for a mortgage, decide what are the issues that are important to you. Would you prefer a static rate of interest or would you like to avail of market conditions where the rates drop for a while? Are you looking to pay off the loan in one shot or would you rather repay it piecemeal, over a long period of time?
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