A traditional mortgage generally requires the buyer to place a down payment of 20% of the purchase price, but with recent changes lenders have made it […]
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 […]
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. […]
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 […]
• 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 […]
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 […]
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 […]
