| The word "mortgage" (method of using property as | | | | half the time and for less than half the total interest |
| security for payment of a debt) is quite frequent in our | | | | costs of the traditional 30-year loan. The loan's term is |
| life, but not all of us know that there are different | | | | shortened by the 10 percent to 15 percent higher |
| types of mortgage loans. | | | | monthly payments. |
| There are two main types of mortgage loans - fixed | | | | 30-year fixed rate mortgage may still be best for your |
| rate mortgage or FRM and adjustable rate mortgage | | | | circumstances, because it offers the lowest monthly |
| or ARM. | | | | payments of fixed rate loans. |
| A fixed rate mortgage (FRM) has the same interest | | | | An adjustable rate mortgage (ARM) is the best choice |
| rate and monthly payment throughout the term of the | | | | for those, who care about lower monthly payment. But |
| mortgage. The payment is calculated to payoff the | | | | the interest rate changes periodically in relation to an |
| mortgage balance at the end of the term. The most | | | | index and payment may go up or down respectively. |
| common terms are 15 year and 30 years, but also | | | | So, if you are sure that your income will increase |
| there are biweekly and convertible mortgages. Let's | | | | adjustable rate mortgage is right for you. |
| take a look on the most popular 15 and 30 year fixed | | | | Use of this article is permitted as long as there are |
| rate mortgages. | | | | clickable links back to us and all credit is given to the |
| The 15-year fixed rate mortgage gives permission to | | | | author. |
| house owners to own their homes free and clear in | | | | |