Fixed-rate mortgages maintain the same interest rate throughout the loan term, offering stability in monthly payments. ARMs have interest rates that can change periodically, based on market conditions, potentially leading to lower initial rates but increased risk over time. Home loan These mortgages allow borrowers to pay only the interest for an initial period before starting principal repayments, often used for investment purposes. Programs like FHA, VA, and USDA loans in the U.S. offer mortgage options with lower down payments or reduced interest rates for eligible borrowers.