Is there an easy way to understand and choose types of interest for beginning borrowers?

Asked by Daniel Dohlstrom

1 Answer

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Answered by Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO
If you're asking about mortgage interest types, Daniel, there's only two: Fixed rates, which stay the same the entire term of the loan, and adjustable rates, which are fixed for a defined period (typically 5, 7, or 10 years), then adjust annually afterwards. In general, adjustable rates are more suited to borrowers with a bit of risk tolerance, with the ability to handle potentially higher payments when their loans adjust, and who may be planning to move within a relatively short time frame. Hope that helps! Ted | 08.18.15 @ 04:08
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 04:16
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Answered by

Ted Rood
Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO

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