Fixed Rate Mortgage Loans - Understand the Pros and Cons of the Fixed Rate Mortgage

Written by Carrie Reeder


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There are a few other important questions you should make sure you have answers to when deciding which type of mortgage is better for you. How long do you plan on staying inrepparttar home? How frequently doesrepparttar 146141 adjustable rate mortgage adjust, and when isrepparttar 146142 adjustment made? What’srepparttar 146143 interest rate environment like? Could you still afford your monthly payment if interest rates rise significantly? Do you knowrepparttar 146144 main pros and cons for each type of loan?

Generally, fixed-rate mortgages are a safer way for first time home buyers to get a mortgage. There is greater stability and less risk involved. It is easy to budget and regulate your expenses when you know exactly what your interest rate will be.

Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.


Adjustable Rate Mortgages - Understand the Benefits Compared to a Fixed Rate Mortgage

Written by Carrie Reeder


Continued from page 1

Lenders have much more flexibility when determining margins, caps, adjustment indices and other things, so new borrowers can easily get confused or trapped by less than honest mortgage companies. One last drawback to adjustable rate mortgages is that on certain mortgages called negative amortization loans, borrowers can end up owing more money than they did at closing. This is becauserepparttar payments on these loans are set so low they only cover part ofrepparttar 146140 interest due. Any additional amount will get added intorepparttar 146141 principal balance.

As you can see there are many pros and cons to adjustable-rate mortgages. You must carefully consider your options before choosing a mortgage that is right for you. Stay informed of all of your mortgage options.

To view our list of most recommended mortgage lenders, visit this page: Recommended Home Mortgage Lenders

Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.


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