Is there an easy way to understand and choose types of interest for beginning borrowers?
Answers | 1
August 18, 2015
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
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Answered by David Skow
Mortgage Broker in Seattle , WA
Thanks for your post .....your best 1st step will be to get a loan pre approval ...
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