Home Buyers Guide from Tammy Mitchell Hines & Co. Workbook for Home Buyers | Page 30

Mortgages
at a Glance

M

guarantee of unchanging monthly payments? Perhaps
a 15-year loan would be better? Or would you prefer
an adjustable rate mortgage with monthly payments
that can rise and fall in accordance with an index reflecting economic conditions?

ortgages used to be simple. You made a
down payment on the house of your
dreams and borrowed the balance at a
fixed rate of interest, promising to pay it
back in regular monthly payments over a period of
Below is a brief synopsis along with the pros and cons
years.
of some of today’s most popular mortgage loans:
TYPE

DEFINITION

30-YEAR
FIXED RATE

ADVANTAGES

DRAWBACKS

COMMENTS

A long-term loan [