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Invest Anywhere: The 5 Ways Real Estate Makes Money

Afford Anything

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What Are the Differences Between Duration and Terms of Mortgages?

Mortgages are classified based on duration and term. Term refers to whether the interest rate is adjustible or fixed. If it's fixed, that means that for whatever time period, the duration of the loan, you agree on one intrest rate. Adjustable terms mean that at a certain period of time, as agreed upon by the bank, the bank can change the interest rate to adjust to whatever is happening in the market. And so those are the three classifications of real estate loans.

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