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( Mortgages usually last for 15 or 30 years, and payments should be made regular monthly.) While this means that your interest rate can never go up, it likewise means that it might be greater on average than an adjustable-rate home loan with time. The interest rate of an variable-rate mortgage (ARM) will change, depending upon market patterns.
For example, if you have a 7/1 ARM, you get 7 years at the repaired rate after which the rate can be changed once annually. This indicates your month-to-month mortgage payment might go up or down to account for changes to the interest rate. Every month, the unsettled interest accumulates to your mortgage balance. http://israelguss757.jigsy.com/entries/general/the-greatest-guide-to-what-percentage-of-mortgages-are-below-700-00-per-month-in-the-united-states |
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