Quote:
Originally Posted by tvp2003
If you have a fixed rate mortgage it's fixed for the entire term.
I think what they were referring to is a variable mortgage -- and more specifically a variable rate mortgage or VRM, as opposed to an adjustable rate mortgage or ARM -- where your payment stays the same (even if interest rates rise), up to a certain point where your monthly payment no longer covers off the interest amount. Once you hit this "trigger rate", your payments start to increase as well just to keep up with the interest rate hikes.
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Oh, ok that makes sense. I don't think the person explained it right, but he did say "trigger rate", so this must be what he meant.