The interest rate never changes with a fixed-rate mortgage, so you’ll know what your monthly payment is until you make the last one. An adjustable mortgage rate depends on the market, so it can fluctuate, but typically not within the first five years. An interest-only loan comes with a “balloon payment” of the entire principal balance at some point—all at once. You’ll pay only interest in the meantime. A negative amortization loan defers some portion of interest for a period of time. Talking to your lender and questioning these options can help you determine which is right for you and your personal financial situation. Lenders are required to deliver the Loan Estimate when an application has been completed, and it should include the name of the borrower, their Social Security number, the property address, an estimated value of the property, the loan amount, and the borrower’s income. You should ask for an estimate of these costs upfront, however, before you apply for the loan.
