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( Home loans generally last for 15 or 30 years, and payments should be made month-to-month.) While this indicates that your interest rate can never ever go up, it also means that it might be higher usually than a variable-rate mortgage gradually. The rate of interest of an variable-rate mortgage (ARM) will change, depending upon market trends.
For example, if you have a 7/1 ARM, you get seven years at the repaired rate after which the rate can be changed once per year. This means your regular monthly home mortgage payment could increase or down to account for modifications to the rate of interest. Every month, the unpaid interest accrues to your home loan balance. http://johnathanoatw587.evenweb.com/the-what-is-the-interest-rate/where-to-get-copies-of-mortgages |
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