george
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 Posted: Sat Oct 08, 2005 3:30 am Post subject: RE: |
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Hi Charlotte,
As far as I know, the loan term in a mortgage varies from a short term of 5-7 years to longer periods of 15 to 20 years. Generally, fixed rate mortgages have a loan term of 10 to 15 years and it may extend to 20 to 40 years also. But adjustable rate mortgages (ARM) may have short terms
after which the loan is refinanced with another home loan.
Then there are the hybrid ARMs which have fixed rates for 5 to 7 years after which the rate adjusts throughout the entire loan term. There are also the balloon mortgages that have loan terms of 5 to 7 years after which it should be paid off entirely. There are other types of home loans like the Option ARMs that usually have loan terms of 15 to 30 years.
Thanks |
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