I think you may be thinking of an ARM (adjustable rate mortgage) where the bank recalculates the interest rate every few years based on the current federal rate (I’m not a money guy, but I think that’s the broad strokes of it).
I pay 2.1% APR until it’s paid off or I choose to refinance again (lol, right). The only thing that changes my monthly payment are the stuff paid from escrow (property taxes and homeowners insurance) since those can vary and the bank takes care of those by folding them into my payment amount.
Nope :)
I think you may be thinking of an ARM (adjustable rate mortgage) where the bank recalculates the interest rate every few years based on the current federal rate (I’m not a money guy, but I think that’s the broad strokes of it).
I pay 2.1% APR until it’s paid off or I choose to refinance again (lol, right). The only thing that changes my monthly payment are the stuff paid from escrow (property taxes and homeowners insurance) since those can vary and the bank takes care of those by folding them into my payment amount.