A lot of homeowners got themselves into an adjusted rate mortgage, and are looking for a way out. Refinancing a mortgage into a stable, fixed rate mortgage is a great decision for many people. With interest rates at near record lows, homeowners are rushing to take advantage and get themselves into a fixed rate mortgage. Here are some reasons why a fixed rate home loan can better than an adjusted rate mortgage.

A few years ago, mortgage rates were nearly double what they are now. Many homeowners got lured into an ARM loan, for better or worse, and now have seen their interest rates increase, and they are stuck with higher monthly payments. Mortgage lenders and banks were eager to do whatever it took to get people into homes, and many times, an ARM loan was the only way that could happen. Many of these ARM loans had a low introductory interest rate that stayed the same for a fixed amount of time. Generally, ARM loans have a 6 month to 2 year fixed rate introductory period. After that time expires, the interest rates can, and most likely will, change. Many people thought their home would increase in value and they could refinance in the future because they would have enough equity in their home to do so. However, things did not happen like many people planned.

Instead, the economy, and housing market, took a turn for the worse. Many people found themselves in a home that instead of increasing in value, lost some. Homeowners all across the country are now stuck with an ARM loan that is going up at every chance it gets, and a home that has lost value. That is why refinancing a mortgage into a fixed rate loan is such a popular option right now.

New Government programs, and the fact that mortgage lenders and banks do not want to deal with more foreclosed homes, makes refinancing into a fixed mortgage easier than ever before. Many people who were not able to get an approval for a beneficial mortgage refinancing, can now get the help they need. Right now, mortgage rates are very low, and many mortgage lenders and banks are offer fixed rate mortgage refinancing options to many people. This is due to the Government programs, and the need to reduce the overall number of people losing their homes to foreclosure or mortgage default.

Fixed rate mortgages offer peace of mind in knowing that your monthly home loan payment will not, and can not change. This means that regardless of market conditions, or anything else that happens, your payment amount stays the same. While the interest rates for a fixed rate are a little higher than an ARM loan, the long term benefits of the fixed rate mortgage are typically much greater.

Get into a fixed rate home loan, and ditch that ever changing adjusted rate mortgage.

-M Petrone

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