2nd-Mortgage

Fixed rate mortgage is essentially a mortgage that stays at the same rate over the course of the contract. This can be from 5 to 30 or more years, and the rate can be pretty low too. Fixed rate mortgage is extremely beneficial, especially if you live in an area that has constantly fluctuating interest rates.

If you had a mortgage with an interest rate of about 7% to 15%, you would be pay a nice sum of money into interest, and if that value increased, you would pay even more. These higher rates can start to effect your financial situation, making it hard for you to make payments and stay on track.

When I was originating loans fulltime, I could barely get the word ARM out of my mouth, before the customer would say, “Oh no! I don’t want an adjustable mortgage. I’ve heard how the rates change and your payment skyrockets, and some people actually lose their homes. No, no, I don’t want my rate to change.” Of course, once I illustrated the thousands of dollars they would save in just a few years and quashed all of those myths about loan payments “blowing up,” most of them decided the ARM was not the “devil loan” it’s made out to be.

You may want to refinance to lower your payment, or you may just want to lower the amount of interest that will be paid over the course of the loan. A 30 year refi loan will give you a fairly low monthly payment, but at the same time you will be paying interest that will equal or exceed the principal of the loan. A 15 year refi loan may raise your monthly payment a couple of hundred dollars, but the amount of interest paid over the term of the loan will only be about half of that of the 30 year loan. When you ask for fixed rate mortgage refi quotes, you will need to specify which type of refi loan in which you are interested, or you may want to ask for quotes on both the longer and shorter refi loans.