Adjustable Vs. Fixed Rate Mortgages

eHow of the Day Adjustable Vs. Fixed Rate Mortgages Adjustable and fixed rates are the two options for mortgages. A fixed rate mortgage means that whatever interest rate is agreed upon when the homeowner signs for a mortgage is the interest rate that will be paid over the entire life of the loan. An adjustable rate mortgage (ARM), on the other hand, will vary based on interest rates in the market and usually resets to a higher interest rate after a predetermined number of years. The interest increase is usually tied to an index. Each type of mortgage offers benefits and drawbacks.…keep reading More Like This How to Blow Dry Hair Straight How to Plan the Layout of a Room How to Make a Crop Rotation Plan How to Make Relaxation a Habit New on eHow Josh's Secret-Recipe Fried Chicken Rachael's Urban Garden Tour Appreciating the Wallet Design Inspiration: French Connection 3 Steps to Sublime Summer Drinks

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