Converting to a Fixed Loan RateArticle Posted by Expert Author: Tony Caro on 04/08/2013
One reason people will look to refinance a home loan is to go from an adjustable rate to a fixed rate mortgage. A Portland refinance home mortgage broker constantly will field questions about these different rates. On the surface, some might not consider a fixed rate to be the better option since the rate may be higher. However, the rate stays the same through the life of the mortgage. Adjustable rate mortgages can increase and this is not always a good thing. The adjustable rate mortgage’s interest could literally skyrocket. Among the reasons why so many have entered into foreclosure over the past few years is their adjustable rate mortgage ended up with an interest rate that was far beyond what they could afford to pay, while at the same time the housing market was rapidly depreciating. While it is possible that an adjustable rate mortgage’s life could average out to something better than the rates for a fixed term loan, there are no guarantees. Those wanting to ensure the stability of their mortgage interest rate should look towards fixed rate offers instead.
Today's interest rates are at an unprecedented low, and most people with decent credit can go through the refinance home mortgage process and end up with a better scenario than they had before. If you are current on your mortgage payments you may be eligible to secure an excellent fixed rate, and maybe even shave a few years off your loan.
Article Posted In: Useful Articles Refinancing Options in Your City