December 11, 2013
Adjustable-rate mortgage (ARM) A mortgage that does not have a fixed interest rate. The rate changes during the life of the loan in line with movements […]
December 11, 2013
Both types of loans can be flexible and allow you to make lower monthly payments during the first few years of the loan. You can repay […]
December 11, 2013
Yes. . . for both the growth of your investment in your home and the amount of your monthly payments during the term of the loan. […]
December 11, 2013
• Introductory period. Many option ARMs have a 1-month or 3-month introductory period at the beginning of the loan. During this period, lenders use a […]
December 11, 2013
If you are not sure that an I-O mortgage payment or a payment-option ARM makes sense for you, there are several other alternatives you could consider. […]
December 11, 2013
Interest-only or option-ARM minimum payments may be risky if you won’t be able to afford the higher monthly payments in the future. For example, suppose you […]
December 11, 2013
• Rising monthly payments and payment shock. It is risky to focus only on your ability to make I-O or minimum payments, because you will eventually […]
December 11, 2013
A payment-option ARM is an adjustable-rate mortgage that allows you to choose among several payment options each month. The options typically include a traditional payment of […]
December 11, 2013
Traditional mortgages require that each month you pay back some of the money you borrowed (the principal) plus the interest on that money. The principal you […]