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( Home loans normally last for 15 or 30 years, and payments must be made month-to-month.) While this indicates that your rate of interest can never go up, it also implies that it might be higher usually than an adjustable-rate mortgage in time. The rate of interest of an adjustable-rate home mortgage (ARM) will vary, depending upon market trends.
For instance, if you have a 7/1 ARM, you get seven years at the fixed rate after which the rate can be adjusted once annually. This indicates your monthly home mortgage payment might increase or down to account for modifications to the rate of interest. Every month, the unpaid interest accrues to your mortgage balance. http://elliotansi601.lowescouponn.com/our-how-did-mortgages-cause-the-economic-crisis-statements |
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