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Be careful if choosing a mortgage based only on its stated annual percentage rate (APR), because there are a variety of other important variables to consider, such as:
The term of the mortgage -- This is connected with the amount of time it will take you to pay off the loan's principal and interest
The variability of the interest rate – We have got two basic types of mortgages: the ones with "fixed" (i.e., unchanging) interest rates and those with variable rates, which can change after a predetermined amount of time has passed, such as one year or five years
Points – These are fees that you pay to a lender or broker when you close the deal
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Read more... [Home Refinancing Basics]
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