This video tells you about the most common types: Fixed Rate, ARM, Balloon, and 2-Step. First, Fixed Rate Mortgages: Payments remain the same for the life of the loan, generally 15 or 30 years. Interest rates remain the same, so payments are predictable. A...
For both, as we show you in this video, compared with other options with fixed rates, housing costs won’t be affected by interest rate changes and inflation. With A 30-Year Term: In the first 23 years of the loan, more interest is paid off than principal...
Usually, Yes. Like the video says, by sending in extra money each month, or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be...
As you’ll see in the video, a lower interest rate allows you to borrow more money than a high rate with the some monthly payment. Interest rates can fluctuate as you shop for a loan, so ask lenders if they offer a rate “lock-in” which guarantees a...
As this story shows, the amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term, and the payment schedule, will all affect the size of your mortgage payment. In bullets: down payment loan size interest...
