Mortgage California Refinance mortgagemavericksonline - Changing Loan Products

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• If you're currently on an adjustable rate mortgage (ARM) loan and it doesn't work for you anymore, you can easily switch to a fixed-rate loan by refinancing. If interest rates have dropped significantly since you took out your ARM, then doing so would make a lot of sense. It is only practical to be reassured that your interest rates are fixed for the span of your loan.

• With ARM, your mortgage payments change along with the market rates. Every time interest rates drop or go up, your monthly dues will too. Interest rates on ARM will periodically adjust after the preliminary fixed period. When you go for the fixed-mortgage rate, interests will stay the same for the duration of your loan.

• When mortgage interest rates were higher, you may have opted for ARM for the reason that ARM offered initial monthly payments and interest rates compared to fixed-rate. However, when interest rates drop, refinancing your mortgage to fixed-rate will ensure a lower interest rate for the duration of the loan.

• Refinancing will also enable you to change from one kind of ARM to another kind that has a much better term and rate combination. You may have gotten a 1-year ARM, where rates adjust yearly and would want to change it to a five⁄one ARM, where your new rate is fixed for the first 5 years before adjusting annually.