When it comes to the Daytona Beach mortgage market, these days the choices can be a little confusing. Mortgages typically fall into one of three categories: fixed rate, adjustable rate (or ARM) or hybrids (a combination of features of both fixed rate and adjustable rate offerings.)
No matter which type you choose, it’s best to select the Daytona Beach mortgage that you can afford the easiest, pay off the quickest and repay as little interest as possible over the life of the loan.
A fixed rate loan offers a set rate that won’t change during the term of the mortgage. If you qualify for a payment based on a shorter-term mortgage, you can save a substantial amount of interest — even though your monthly payments will be higher.
An ARM is a popular choice since the initial rates may be lower. However, if you choose an ARM, remember these two factors:
1) WHEN the interest rate can adjust, and
2) HOW MUCH it can adjust
Find more articles about the Daytona Beach mortgage market by checking out our Daytona Beach Mortgage Info to your right just below our Daytona Beach Real Estate Categories.
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