| years of the loan, after which the interest rate fluctuates. Adjustable rate mortgages, like other equity equity home home loan loan rate of mortgage, may offer the ability to repay principal (or capital) early without penalty. Early payments of part of the principal will reduce the total cost of the loan (total interest paid), and will shorten the amount of equity equity home home loan loan rate needed to pay off the loan. Early payoff of the entire loan amount (refinancing) is often done when interest rates drop significantly. Adjustable rate mortgages are sometimes sold to unsophisticated consumers who are unlikely to be able to repay the loan should interest rates equity equity home home loan loan rate which they often do. In the United States, extreme cases are characterized by the |
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