Comparing Mortgage Loan Types
If you live in Arizona and are looking to buy a house or to refinance, are you familiar with the rates of all the different kinds of mortgages available to you? A fixed mortgage has a fixed interest rate as well as a fixed payment amount and maturity date. 30 years is the normal amount of time to pay this type of mortgage back but 15 year, lower rate programs are common also. An adjustable rate mortgage has a low rate and payment at the beginning of the loan but after several months, a brutal rate increase can occur. The interest rate tracks with a variable index like LIBOR. Those seeking an az refi can choose between a variable rate line of credit or a fixed rate loan.