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( Home loans typically last for 15 or 30 years, and payments should be made month-to-month.) While this implies that your interest rate can never go up, it also indicates that it could be greater typically than a variable-rate mortgage over time. The rate of interest of an variable-rate mortgage (ARM) will fluctuate, depending upon market trends.
For example, if you have a 7/1 ARM, you get 7 years at the repaired rate after which the rate can be changed as soon as annually. This means your monthly home loan payment might increase or down to represent modifications to the interest rate. Each month, the overdue interest accrues to your home loan balance. http://gunnerncqh301.cavandoragh.org/about-how-do-mortgages-work-with-married-couples-varying-credit-score |
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