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( Mortgages usually last for 15 or thirty years, and payments need to be made regular monthly.) While this suggests that your interest rate can never go up, it also suggests that it might be higher on average than a variable-rate mortgage over time. The rates of interest of an variable-rate mortgage (ARM) will change, depending on market trends.
For instance, if you have a 7/1 ARM, you get 7 years at the repaired rate after which the rate can be adjusted when each year. This implies your monthly home loan payment might increase or down to represent modifications to the rates of interest. Every month, the overdue interest accrues to your home loan balance. http://finnwzgb313.image-perth.org/the-best-guide-to-who-has-the-lowest-apr-for-mortgages |
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