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( Home mortgages normally 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 also implies that it might be greater usually than a variable-rate mortgage gradually. The interest rate of an variable-rate mortgage (ARM) will fluctuate, depending on market patterns.
For instance, if you have a 7/1 ARM, you get 7 years at the fixed rate after which the rate can be adjusted once each year. This indicates your month-to-month mortgage payment might increase or down to represent changes to the interest rate. On a monthly basis, the overdue interest accumulates to your mortgage balance. https://259628.8b.io/page13.html |
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