Leah Kelvin
Active member
A mortgage is a loan for buying property in which the borrower pays back the lender over 15-30 years. Fixed-rate mortgages have stable interest rates whilst ARM’s can vary depending on market conditions. Refinancing involves replacing an existing mortgage with a new one to get better rates, terms, or access equity. However, it is necessary to consider such costs as closing fees; lower rates might lead to reduced payments and long term savings. By renegotiating the terms of the loan, you can change its duration. This means that it is necessary for borrowers to evaluate their financial condition and needs before they take up mortgages and refinancing plans.Understanding these concepts is vital in making informed choices about housing loans and financial management.
