Different mortgage loan types come with different loan rates and loan terms, but there are other important characteristics to consider as well. The interest rate of an adjusted rate mortgage, or ARM, can fluctuate both up and down based on the current mortgage interest rate market. Adjusted Rate MortgageĪn adjusted rate mortgage has an interest rate that changes throughout the life of the loan. This mortgage loan type also keeps your monthly mortgage payments the same throughout the life of the loan. Fixed Rate MortgageĪ fixed rate mortgage has an interest rate that stays the same throughout the life of the loan. For example, a loan could start off with a fixed rate for a certain amount of time, but then switch to an adjusted rate mortgage later. Some loans can even include both of these mortgage rate types. One of the first characteristics of a mortgage loan type is the type of rate attached to the loan.
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