Briefly describe the two basic types of mortgage loans. Which has the lowest initial rate of interest?

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Briefly describe the two basic types of mortgage loans. Which has the lowest initial rate of interest? What is negative amortization, and which type of mortgage can experience it? Discuss the advantages and disadvantages of each mortgage type.

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Personal Financial Planning

ISBN: 978-1111971632

13th edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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Question Posted: Feb 13, 2015 09:30 AM

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Briefly describe the two basic types of mortgage loans. Which has the lowest initial rate of interest?

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The fixedrate mortgage is the traditional form of a mortgage and is characterized by the fact that both the rate of interest and the monthly payment a...View the full answer

Personal Financial Planning

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