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Arizona Home Mortgage Loans

Written by Rachel Arieff
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Arizona home mortgage loans vary according to the needs of the buyers. Before you apply for home mortgage loans, know exactly what kind of payment plan is best for you. This involves knowing what your plans are for living in the home you're about to buy.

For example, how long do you plan on living in this home? Some people buy a home with the intent of living in it for their lifetime, or at least far into the foreseeable future. Others intend to resell the home after a few years. Either of these goals will lead you to distinct types of Arizona home mortgage loans.

Further Distinctions in Arizona Home Mortgage Loans

There are two main types of Arizona home mortgage loans. One is the fixed-rate mortgage. The other is the adjustable-rate mortgage. The fixed-rate mortgage is just what it sounds like: it has a fixed, locked-in interest rate, and regular monthly payments.

The adjustable-rate mortgage, or ARM, is a variable-rate mortgage that fluctuates with the changes in market interest rates. Adjustable-rate mortgages are usually offered at initially low rates, but they lose their appeal because of their unpredictability. Besides, today's interest rates are low, so it's easy to lock in a low interest rate on fixed-rate new home loans and avoid the stress of jumping interest rates and soaring mortgage payments.


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