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12-19-2021 |
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( Mortgages usually last for 15 or thirty years, and payments need to be made month-to-month.) While this indicates that your interest rate can never go up, it also indicates that it might be higher typically than an adjustable-rate home loan in time. The rate of interest of an variable-rate mortgage (ARM) will change, depending upon market trends.
For instance, if you have a 7/1 ARM, you get 7 years at the fixed rate after which the rate can be changed when each year. This implies your month-to-month home mortgage payment might go up or down to represent changes to the rate of interest. Each month, the unpaid interest accrues to your mortgage balance. https://www.evernote.com/shard/s313/sh/b61ffd45-82a4-9472-0652-e1098ed5988f/ |
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