Already on ArticleSlash?

Forgot your password? Sign Up

Home Mortgage Interest Rates How Low Can They Go?

 


Visitors: 162

Many reading this are old enough to remember home mortgage interest rates when they were above 15%. Compared to those days, today's rates are at historic lows. It is possible that sometime in the future many will look back wishing they took advantage while they can.

One must be careful when scrutinizing the offered interest rate on any given mortgage. Some lenders can use tricks to make borrowers think that the rate is lower than it actually is. The devil is often in the details.

Some mortgages are what are called adjustable rate mortgages, or ARM's for short. These loans come with an initial interest rate which then adjusts along with the prevailing market rates. The adjustment formula usually dictates the rate goes one way which is up.

These ARM's can have low initial interest rates. Some borrowers assume that this rate will stay the same for the life of the loan. This is not the case. They are confusing ARM loans with what are called fixed rate loans.

A fixed interest rate loan never changes. You know exactly what your mortgage payment will be as long as you own the home. This allows for effective family budgeting pertaining to your housing expenses.

At the other end of the spectrum are ARM's with extremely low introductory interest rates. These mortgages are called “teaser rate" loans. Teaser rate loans are especially dangerous and can result in a foreclosure.

When mortgage payments skyrocket it catches many families surprised an unable to afford their housing expense. It is essential that you read the fine print on any adjustable rate mortgage to make sure that interest rate is really as low as you think it is.

It is a great time to take advantage of low home mortgage interest rates. The lower the interest rate equates to a lower payment for you. Just ensure you do your research and don't get tricked into getting a mortgage with a high interest rate disguised as a low one.

Compared to many years ago, home mortgage interest rates are at all time lows. To get more, check out http://www.MortgageLoans-101.com where you'll find this and everything else you need for making the right decision with your mortgage.

(389)

Article Source:


 
Rate this Article: 
 
Mortgage Interest Rates Keep Steady
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

How to Lower Home Mortgage Interest Rates

by: Alan Lim (June 05, 2007) 
(Finance)

Home Mortgage Interest Rates An Overview

by: Steven Copper (July 28, 2008) 
(Finance/Mortgage Refinance)

How to Get Lowest Interest Rates on Your Home Mortgage

by: Ervin Stansel (May 20, 2011) 
(Finance/Loans)

Lowest Home Refinance Mortgage Interest Rates Online

by: FrankW Ellis (January 09, 2007) 
(Real Estate)

Current Home Mortgage Interest Rates Get the Best Deal by Keeping Up With the ..

by: Yvonne Suzannah (July 07, 2008) 
(Finance/Mortgage Refinance)

Mortgage Interest Rates: Should You Lock In Your Mortgage Interest Rate

by: Louie Latour (March 04, 2007) 
(Real Estate)

Mortgage Interest Rates Up Up and Away

by: Ki Gray (June 23, 2008) 
(Finance/Mortgage Refinance)

No Doc Mortgage Interest Rates

by: Gressly Stevens (October 03, 2008) 
(Finance/Mortgage Refinance)

Mortgage Interest Rates Are Falling

by: Greg Shuey (October 20, 2008) 
(Finance/Mortgage Refinance)

Mortgage Interest Rates Keep Steady

by: Ki Gray (August 10, 2008) 
(Finance/Mortgage Refinance)