This refers to how often the interest rate for adjustable-rate mortgages changes. Some adjustable rate mortgages change every month, but it is more typical to have one or two adjustments per year. The less frequently your loan rate shift’s, the less financial uncertainty you may have. But less frequent adjustments in your mortgage rate mean that you will probably have a higher teaser, or initial interest, rate. (The initial interest rate is also called the “start rate”.)
No comments:
Post a Comment