Understanding Mortgage Options: Are Payments Flexible?By Karen Lawson
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Due to unprecedented booms in real estate prices in many areas, lenders have developed adjustable rate mortgages with the goal of making homeownership affordable. Although this can assist those who live in areas where housing is very costly, these loans are usually structured so that payments increase after an initial period of reduced payments.
Paying Attention to Mortgage Loan TermsYour lender's job is to provide mortgage loans that enable people to buy homes. In the excitement of buying a new home, borrowers may not pay close attention to the terms of their mortgage loans. It's easy to let the mortgage lender recommend a loan, then, once discovering that you qualify, just going ahead and signing the papers without understanding all the details of the loan. Everything seems OK until you receive notice that your payments are increasing significantly. Knowing how your mortgage works can help avoid problems later.
About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds an MA degree in English from the University of Nevada, Reno.
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