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( Mortgages typically last for 15 or thirty years, and payments need to be made month-to-month.) While this indicates that your interest rate can never ever go up, it also means that it could be greater typically than a variable-rate mortgage with time. The interest rate of an variable-rate mortgage (ARM) will fluctuate, depending upon market patterns.
For example, if you have a 7/1 ARM, you get 7 years at the repaired rate after which the rate can be adjusted when per year. This means your monthly mortgage payment could go up or down to account for modifications to the interest rate. On a monthly basis, the unpaid interest accumulates to your mortgage balance. https://www.onfeetnation.com/profiles/blogs/the-main-principles-of-for-mortgages-how-long-should-i-keep-email |
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