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Aren there just two kinds of mortgages fixed and adjustable rates?

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Aren there just two kinds of mortgages fixed and adjustable rates?

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Though this is an over simplification, all mortgages fall into one of these two categories – that is, the interest rate you pay is either the same (fixed) for the life of the mortgage, or it can change (adjust) over the life of the mortgage. Yet there are actually hundreds of different types of mortgage programs available to fit almost any persons financial situation. Fixed-Rate Mortgages With this type of mortgage your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also “bi-weekly” mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 “months” worth, every year.) Adjustable-Rate Mortgages (ARMS) These loans may begin with an interest rate that is 1-3 percent below a com

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