Guide to Home Equity Loans

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A 5 year ARM has a fixed interest rate (and hence monthly payments) for 5 years and adjusts for the remainder of the loan life., For example Most people refinance or sell the property before the 5 years are up so that they do not have to deal with the adjusting interest rate. Which means the monthly payments are calculated as if you are paying the loan off in 30 years., Most of the ARMs are amortized over 30 years

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Guide to Home Equity Loans.

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