Mortgage Types
When shopping for a mortgage loan, most people pay special attention to interest rates, but often neglect to carefully consider what type of mortgage loan best fits their needs.Fixed-rate mortgages are the most common type of mortgage. Theyre best defined by having an interest rate and payment that doesnt change for the life of the loan. An adjustable-rate or variable-rate mortgage is a loan with a note that has as interest rate that periodically adjusts to a new interest rate. An interest-only mortgage has an initial payment that includes only interest, with no principal reduction, for a specified period of time.
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