Are there different types of mortgages?
Yes. The two basic types of mortgages are fixed rate and adjustable rate. Fixed Rate Mortgages If you’re looking for a mortgage with payments that will remain unchanged over its term, or if you plan to stay in your home for a long period of time, a fixed rate mortgage is probably right for you. With a fixed rate mortgage, the interest rate you close with won’t change-and your payments of principal and interest remain the same each month-until the mortgage is paid off. The fixed rate mortgage is an extremely stable choice. You are protected from rising interest rates and it makes budgeting for the future very easy. But in certain types of economies, the interest rate for a fixed rate mortgage is considerably higher than the initial interest rate of other mortgage options. Once your rate is set, it does not change and falling interest rates will not affect what you pay.
Yes. The two basic types of mortgages are fixed rate and adjustable rate. Fixed Rate Mortgages If you re looking for a mortgage with payments that will remain essentially unchanged over its term, or if you plan to stay in your new home for a long period of time, a fixed rate mortgage is probably right for you. With a fixed rate mortgage the interest rate you close with won t change and your payments of principal and interest remain the same each month until the mortgage is paid off. The fixed rate mortgage is an extremely stable choice. You are protected from rising interest rates and it makes budgeting for the future very easy. But in certain types of economies, the interest rate for a fixed rate mortgage is considerably higher than the initial interest rate of other mortgage options. That is the one disadvantage of a fixed rate mortgage. Once your rate is set, it does not change and falling interest rates will not affect what you pay. Fixed rate mortgages are available with terms of
