| tart --> | | | | hybrid mortgages are really just a combination of |
| If you are in the process of refinancing your home | | | | Fixed Rate and Adjustable Rate Mortgages. |
| mortgage loan, choosing the right type of mortgage for | | | | The interest rate on your Adjustable Rate Mortgage |
| your situation could save you thousands of dollars. | | | | will change every time the lender resets your loan. |
| There are two basic types of mortgage loans to | | | | When the lender resets your interest rate and |
| choose from when refinancing depending on your | | | | payment amount, they will use the financial index your |
| financial needs and tolerance for risk. Here are several | | | | loan is tied to plus their own margin. The most |
| tips to help you choose the right type for mortgage | | | | common index used by mortgage lenders is the |
| when refinancing your home loan. | | | | one-year Treasure note. Adjustable Rate Mortgages |
| Mortgage loans come in two varieties: loans with fixed | | | | have the advantage of lower initial payments; |
| interest rates and those with adjustable interest rates. | | | | however, these loans have more risk for borrowers |
| Fixed Rate Mortgages come with term lengths of ten | | | | once the lender begins adjusting the loan. |
| to fifty years and have payments based on an | | | | Homeowners who understand the risks associated |
| interest rate that does not change for the duration of | | | | with Adjustable Rate Mortgages can save thousands |
| the loan. Adjustable Rate Mortgages on the other | | | | of dollars when refinancing their mortgage loans. You |
| hand, are based on a specific financial index and will | | | | shouldn't write off Adjustable Rate Mortgages |
| include the mortgage lenders margin. There is another | | | | because someone told you that you'll have payment |
| type of mortgage known as hybrid loans; however, | | | | shock when the lender begins adjusting your loan. |