What kind of mortgages are there?

The financing world is always changing, more now than ever. Simply speaking, there are only two types of mortgages, fixed and adjustable.

Fixed mortgages are for a set period of time — 30 years, 25 years, 20 years, 15 years, 10 years and 5 years — and the principle and interest, PI, and payment will stay the same throughout the life of the loan.

Adjustable rate mortgages (ARMs) will change in a predetermined fashion as set forth in your mortgage note and/ or mortgage rider. One example would be a one year ARM which could change every year depending one its index and margin.

** Note you may look up all of the terms mentioned in our Glossary.

When it comes down to which loan is right for you, start by talking in detail with one of our staff at The Financial Web, Inc. or continue to use our website and read about the types of mortgages you may want.

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