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( Home loans typically last for 15 or 30 years, and payments should be made month-to-month.) While this means that your interest rate can never ever increase, it also implies that it could be greater typically than an adjustable-rate home mortgage in time. The interest rate of an adjustable-rate home mortgage (ARM) will fluctuate, depending on market trends.
For example, if you have a 7/1 ARM, you get 7 years at the fixed rate after which the rate can be changed once annually. This implies your regular monthly home loan payment could go up or down to account for changes to the rate of interest. Monthly, the unpaid interest accrues to your mortgage balance. http://marcoydma472.evenweb.com/rumored-buzz-on-when-did/10-easy-facts-about-how-is-the |
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