Why are mortgage loan interest rates higher for fixed rate mortgages held for longer periods of time?

Answers:0   |   LastUpdateAt:2012-10-07 11:16:35  

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Sorry if this sounds like a silly question , but I do not understand. For example , why are 30 years fixed mortgage rates the highest mortgage rates , vs say a 15, and why are 15 year fixed rate mortgage higher than adjustable rate mortgages ? It seems that lenders are taking a greater risk with an ARM versus a fixed rate mortgage and have to pay a higher rate (eg , comparing this situation with a new car loan versus a used car loan - the risk is higher in a used car loan ? ? ? ? MedlinePlus I can understand a fixed rate loan of 30 than 15 - a higher risk of default by the borrower , but still do not get the ARM be so low .
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