Overview of Michigan Mortgage Loans
* More than the rate is fixed on a FRM. It also has a fixed monthly payment, and a fixed date by which the debt is fully repaid. Most borrowers repay the mortgage over 30 years, but longer and shorter terms are available. Shorter terms usually carry lower interest rates.
* Mortgages in which the monthly payments change are referred to as adjustable-rate. Payments start out low. Then interest rates and payments adjust according to a predefined schedule. LIBOR and other benchmark indices determine the amount by which rates change.
* A second mortgage with a fixed rate is a home equity loan.
* A second mortgage with an adjustable rate that’s usually tied to prime is a HELOC.
