Homeowner loans or mortgages come in two basic types. There are fixed rate homeowner loans and adjustable rate homeowner loans. These terms refer to the interest rate applied to the loan.
Both types of loans have pros and cons. Before a person decides on which type of homeowner loan to get they should understand each type so they can make the best decision for them.
Fixed rate loans have a locked in interest rate. When the loan is made, the current interest rate is used for the life of the loan. The biggest advantage to this type of loan is that the monthly payment amount will not change.
However, if the rate locked in at is rather high then in the long run the homeowner will pay a lot for the loan. Fortunately, there is the option of refinancing when interest rates fall. This does involve more paperwork and can include additionally costs. Some people may not prefer this option due to these factors.
Adjustable rate loans have an interest rate that changes as the interest rates change. With this type of loan the monthly payment will change. The homeowner will not ever know exactly how much they need to pay until the due date.
The good point...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
