| Mistakes made with regard to your mortgage could | | | | when interest rates are low, your monthly payment will |
| cost you thousands of dollars. To prevent making | | | | be low. This advantage quickly evaporates when |
| common mortgage mistakes you need to do your | | | | interest rates rise as they have over the last year. |
| homework before shopping for a mortgage. Here are | | | | Hybrid Mortgages |
| the basic types of mortgage loans. | | | | Hybrid mortgages offer the best of both worlds. The |
| Traditional Fixed Interest Rate Mortgage Loans | | | | hybrid mortgage offers a fixed interest rate for the |
| This is the old-fashioned mortgage your grandparents | | | | initial period and converts to an adjustable rate |
| had. The interest rates and payment amounts are | | | | mortgage after that. A 5:1 hybrid mortgage for |
| fixed for the duration of the loan. Fixed rate | | | | example, offers a fixed interest rate for five years, |
| mortgages are the safest mortgage available and | | | | then adjusts to the current interest rate plus lender |
| recommended for most homeowners. | | | | markup every year after that. Hybrid loans are great |
| Adjustable Interest Rate Mortgages | | | | for homeowners that want to take advantage of |
| Adjustable rate loans are simply a mortgage that | | | | lower interest rates but do not want to commit to a 15 |
| changes the interest rate at periodic intervals. The | | | | or 30 year mortgage. If you are putting off refinancing |
| interest rate in an adjustable rate is tied to some | | | | because you might be moving in five years, a hybrid |
| financial index. The mortgage lender will add a premium | | | | mortgage with no prepayment penalty could be your |
| markup to this interest rate and adjust your mortgage | | | | answer. |
| to this new rate. Adjustable rate mortgages change | | | | To learn more about mortgages and the mistakes |
| their interest rate and monthly payment amounts at | | | | homeowners make, sign up for a free mortgage |
| regular intervals specified in your loan contact. The | | | | guidebook. |
| advantage of an Adjustable rate mortgage is that | | | | |