Mortgage

QWhat Is Adjustable-rate Mortgage?
AA adjustable-rate mortgage is a mortgage where the interest rate on the loan can change over the lifetime of the loan. This type of mortgage is best suited for those whose can afford to take the risk of interest rate change. If the interest rate goes up during the period of your mortgage your payments will also go up, however; if the interest rate goes down your payments will decrease. There are two categories of adjustable-rate mortgages, one year adjustable are adjust annually and the others are set up by you and the lender on a schedule of when the adjustment will occur. Adjustable-rate mortgages run for 1, 3, 5, 7, or 10 years and have caps on the changes to the interest rate per adjustment period and for the life of the mortgage.