Money: So How Are You Fixed for a Mortgage?Steve Lodge personal finance editor
5. Adjustable-rate mortgage (ARM)In contrast to fixed-rate loans, adjustable-rate mortgages (ARMs) come with interest rates that change over time. Typically with an ARM, you’ll get a lower, fixed introductory rate for a set period. After this period, the rate changes, either up or down...
Fixed-rate and variable-rate mortgages Short-term and long-term mortgages Pay off your mortgage faster A mortgage is a big commitment. Most mortgages are paid over 25 years, but you can pay them off faster. Reducing the number of years you make mortgage payments can add up to big savings...
With a repayment mortgage, the amount of interest you pay is calculated on the amount left to repay. The rate will be fixed or variable, depending on the product itself. During the first few years, you pay more in interest than repaying the capital borrowed. Towards the end of the term,...
First off, fixed-rate mortgages do not have associatedmortgage indexes, margins, or caps because they are not variable-rate loans. It’s basically a set-it-and-forget-it loan program that’s easy to understand, unlike mortgages with adjustable rates. ...
Scheduled interest (usually fixed) Prepaid principal (usually variable depending on the actions of homeowners, as governed by prevailing interest rates) Collateralized mortgage obligations (CMOs) CMOs are repackaged pass-through mortgage-backed securities with the cash flows directed in a prioritized orde...
Consider factors like mortgage pre-approval, down payment amount, closing costs, and ongoing expenses such as property taxes and maintenance. Be sure to leave room in your budget for unexpected costs that may arise during the home-buying process. Research the Market Researching the market is ...
Are interest rates higher for a cashback mortgage? Interest rates vary from one mortgage to the next, and depending on your personal circumstances, but cashback mortgage rates are usually higher than standard fixed-rate or variable mortgage deals that offers no incentives. Should you get a cashback...
For your fixed budget, the main things to include are utilities, rent or mortgage, car payments, loans and fixed bills like cable and Internet. Once you have these figures laid out you may be surprised to see how much you are spending. Luckily, you can figure out what things can be low...
Being able to separate your fixed costs from your variable costs allows you to calculate a very useful figure; your business’sbreak-even point. If you sell goods, or if you sell your services priced as units, the break-even point is how many units you need to sell in order to cover ...