Is there an easy way to understand and choose types of interest for beginning borrowers?
Answers | 1
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