Buying a home is probably the biggest decision you will every make. But deciding to buy is only the first step in the decision making process.
Now, you must decide what type of mortgage is best for you, and if youve never bought a home before then the terms can be confusing.
Many factors must be considered when selecting the right mortgage. Most importantly, borrowers must understand how the different types of mortgages are structured.
The three most common types of mortgages are adjustable rate mortgages, fixed rate mortgages, and balloon mortgages.
An adjustable rate mortgage (ARM) is structured so that the interest rate is not locked down.
Usually, the introductory rate is set for about 5 to 7 years, at which point it will be adjusted either up or down, depending on the current interest rates.
After the initial rate adjustment, ARMs are usually adjusted every two years for the remaining length of the loan. Interest rate adjustment is usually capped at about 2 percent, meaning that the interest rate cannot be adjusted more than that each time.
ARMs are also set with a maximum adjustment rate. If the maximum...
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...
