Buy custom Process of Buying A Home
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Business
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| Number of pages / Number of words: |
13 / 3560 |
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The monthly payment of $665.30 will not vary and will be divided each month to pay the interest on the loan and to reduce the principal owed. In the early months of a mortgage loan, nearly all of the payment goes toward the payment of interest. The advantages of the fixed-rate mortgages are that they are easy to understand and they help the borrower plan for the future since the payment is predetermined and will not change...
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The advantages of the fixed-rate mortgages are that they are easy to understand and they help the borrower plan for the future since the payment is predetermined and will not change. The disadvantages are that these mortgages may carry highest interest rates than other types of mortgages, and if interest rates in general decline after the borrower obtains a fixed-rate mortgage, the locked-in rate may be a problem...
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