initial interest rates http://www.artwoo.com Returned search results for initial interest rates Copyright 2008 Fri, 21 Nov 2008 05:52:48 +0000 http://www.artwoo.com/rss/initial+interest+rates Best Home Equity Loan Interest Rate - What Is The Best Rate You Can Get? http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get#comments Sat, 26 Aug 2006 20:27:09 +0000 home equity loansequity loan programsadjustable rate loansinterest ratesmortgage lendersfurthermorerate home equity http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get mortgage lenders, finding the best rate can be challenging. Each lender has different lending requirements. , low rates may be reserved for applicants with excellent credit. Here are a few tips for getting a low rate on your home equity loan.

Selecting a Home Equity Loan Program

There are many different home . Moreover, each loan option offers varying . Before choosing the best rate available, homeowners must decide on a particular home equity loan option. For example, will you take advantage of the full equity amount, or only borrow a portion of the equity. Decisions of this sort will impact the interest rate received.

Adjustable Rate

If seeking low monthly payments, a home equity loan with an adjustable rate may be a suitable option. These types of loans afford low initial payments because they offer low introductory rates. However, interest rates may fluctuate after the initial period. Homeowners may either repay the loan before interest rates increase or prepare to pay higher monthly payments in the future.

Fixed Loans

Although fixed rate home equity loans offer higher interest rates than , many homeowners choose this option because monthly payments are predictable. When selecting an adjustable rate, the interest rate may greatly decrease in the future. Higher payments could create a financial burden. Because home equity loans are secured by the home, some homeowners do not want to risk losing their home due to defaulting on the loan.

Getting the Best Home Equity Loan Rate

Regardless of the home equity rate chosen, most interest rates are based on personal credit history. If attempting to get the best rate possible, homeowners should review their current credit standing. It's no secret that good credit applicants obtain better rates.

Furthermore, request quotes from various mortgage lenders. Sometimes, obtaining the best rate possible is simply a matter of comparison shopping and exploring all lending options. Quotes are no-obligation and include offers from up to four different lenders. Visit http://www.homeequitywise.com for help finding the Best Home Equity Loan Interest Rate. ]]> Best Home Equity Loan Interest Rate - What Is The Best Rate You Can Get? http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get#comments Wed, 29 Aug 2007 10:10:00 +0000 home equity loanhome equity loansrate home equityequity loan programsequity rateadjustable rate loansfixed rate home equity loans http://www.artwoo.com/article/best-home-equity-loan-interest-rate-what-is-the-best-rate-you-can-get home equity loan, getting a good interest rate is generally a primary concern. Because of a wide variety of mortgage lenders, finding the best rate can be challenging. Each lender has different lending requirements. Furthermore, low rates may be reserved for applicants with excellent credit. Here are a few tips for getting a low rate on your home equity loan.

Selecting a Home Equity Loan Program

There are many different home . Moreover, each loan option offers varying interest rates. Before choosing the best rate available, homeowners must decide on a particular home equity loan option. For example, will you take advantage of the full equity amount, or only borrow a portion of the equity. Decisions of this sort will impact the interest rate received.

Adjustable Rate

If seeking low monthly payments, a home equity loan with an adjustable rate may be a suitable option. These types of loans afford low initial payments because they offer low introductory rates. However, interest rates may fluctuate after the initial period. Homeowners may either repay the loan before interest rates increase or prepare to pay higher monthly payments in the future.

Fixed Loans

Although offer higher interest rates than , many homeowners choose this option because monthly payments are predictable. When selecting an adjustable rate, the interest rate may greatly decrease in the future. Higher payments could create a financial burden. Because home equity loans are secured by the home, some homeowners do not want to risk losing their home due to defaulting on the loan.

Getting the Best Home Equity Loan Rate

Regardless of the home chosen, most interest rates are based on personal credit history. If attempting to get the best rate possible, homeowners should review their current credit standing. It's no secret that good credit applicants obtain better rates.

Furthermore, request quotes from various mortgage lenders. Sometimes, obtaining the best rate possible is simply a matter of comparison shopping and exploring all lending options. Quotes are no-obligation and include offers from up to four different lenders. Visit http://www.homeequitywise.com for help finding the Best Home Equity Loan Interest Rate. ]]> Car Loan Value http://www.artwoo.com/article/car-loan-value http://www.artwoo.com/article/car-loan-value#comments Mon, 15 Jan 2007 02:27:09 +0000 car loaninterest ratescreditorscarspurchase a carcar valuedbuy a car http://www.artwoo.com/article/car-loan-value car loan, you need to know the value of the car loan and what you have just agreed to. You should know that your loan has two values. You have an interest value and then you have the actual value. When you put the two together, it's a lot more than you though you would pay. Even with smaller payments, in the long run you end up spending so much because of the .

For example, you may buy a at $10,000. Then you finance it for 6% interest. Take your total amount and times that by .06 and your get your interest. Then you should add both titles together and you will find what you really pay. It comes to be $10,600, however, if that doesn't include all your other fees, you may end up pay about $12,000 for the car. That adds up to be two thousand more than you expected. Did you ever realize that?

When you go for a car loan you need to look at it based on interest. What is the interest? Can you get a lower rate with someone else? You want to make sure that you get a lower interest rate than you can image. You don't want to pay six percent, but go for something like five percent. It's rare that you will ever see interest rates on below five percent. Most cars are financed at six, seven, or even eight percent. That's the average, there are many people will for what more interest.

Have you ever had a dealer try to take care of everything? It's most likely because they don't want to try to get you the best deal on interest rates, but just approved. Most of the time, you don't realize, but you may end up paying more in interest than you'd like if you allow the dealer to do everything.

You should try to seek what the going rate for all of the that they deal with and which ones have the lower rates. You may find that they don't vary much, but you will still want to go with the lowest rates possible. Ask the dealer to list you the going rate for all the creditors and then go home and think about it. You may even want to apply online or search some of the creditors on the net to see if there are lower rates. This is the only way that you can get the best rates for your purchase. James Gunaseelan writes articles andamp; reviews for http://www.bharathautomobiles India's No.1 Auto Portal ]]> Tips on Choosing the Right Home Loan Rate http://www.artwoo.com/article/tips-on-choosing-the-right-home-loan-rate http://www.artwoo.com/article/tips-on-choosing-the-right-home-loan-rate#comments Thu, 28 Aug 2008 03:08:27 +0000 rate home loansfixed rate home loanshome loan ratetypes of home loanshome loan interestobtaining a home loanadjustable rate loan http://www.artwoo.com/article/tips-on-choosing-the-right-home-loan-rate home loan rate. There are basically two types : the adjustable interest rate and the fixed interest rate.

is one of the most important activities of the modern individual of today. And in getting such loan to succeed, he also needs to obtain helpful information on the home loan rate. Still many people seem indifferent if not intimidated when hearing the phrase home loan rate because it is obviously connected to activities that require spending money. Such intimidation stems from the fact that people have little knowledge about the topic. And if only they get more enlightened about the term, it can even help them in getting better loan terms and beneficial home loan as a whole.

Types of rates

There are two important according to interest rates that are available for those who plan on borrowing money to purchase their dream home.

1. The first type is the fixed rate home loan, in which the rates and the dues every month are extended on a fixed duration of time, from 15 to 30 years.

2. The second type is the , wherein the rates fluctuate, going up or down according to the current market rates.

Fixed Home Loan Rate

The fixed are normally the more popular of the two interest rates schemes among the borrowers. are actually more in demand because most people are very much aware of the current situation on the market today wherein payment go up or fall down easily and without any warning, all because of the changing rates of interests. This is why people gravitate heavily towards fixed rate home loans especially when the offered interest rates at that time are low, making the loans very attractive to them.

Loans with fixed rates are usually divided into two: the fixed 15 year home loan and the fixed 30 year home loan. Some people tend to find the 30 year as more reasonable and beneficial of the two. This is because the longer the duration of payment, the lesser amount is to be paid every month. However, the disadvantage of the 30 year fixed rate home loan is that people will be paying more in interest rates by the end of the loan.

Adjustable Home Loan Rate

On the other hand, in spite of the varying interest rates, there are prospective borrowers who would rather get an adjustable rate home loan. This is because the fluctuating rates are not actually as bad as they seem to be. An adjustable rate home loan actually starts with fixed interest rate for a longer period and followed by shorter period of adjustable rates.

What is beneficial about home loans with adjustable rate is that the fixed rates during the starting period are lower than that of fixed rate loans. And this initial period of the fixed rate loan part of the loan is much longer than that of the adjustable rate loan. For example, the fixed-rate loan term's initial period can be as long as 10 years. On the other hand, adjustable rate loan will be for just a year. Obviously people get more benefit with adjustable rate home loan.Visit the web site located at Home Loan Rate for the best information about common Home Loan types such as fixed rate and adjustable rate mortgages.]]> Adjustable Rate Mortgages: Good Or Bad? http://www.artwoo.com/article/adjustable-rate-mortgages-good-or-bad http://www.artwoo.com/article/adjustable-rate-mortgages-good-or-bad#comments Wed, 29 Nov 2006 02:27:18 +0000 adjustable rate mortgagesfixed rate mortgagesfixed rate mortgageadjustable rate mortgageinterest rates droptake a closer looksimple matter http://www.artwoo.com/article/adjustable-rate-mortgages-good-or-bad fixed rate mortgage is a very important decision. Each of these options has both strengths and weaknesses. However, the final decision comes down primarily to ones' level of personal and financial risk, as well as to a of preference.

This short article will at both types of loans with the intention of helping you make an informed decision.

A fixed rate mortgage is a good option for individuals who like being able to know exactly how much they will be required to pay on their mortgage each month. There are no surprises with a fixed rate mortgage. It is also a great option if one plans to stay in their home for the term of the loan or for at least quite a while. They also work well for individuals on a fixed income.

do have their disadvantages. For example, fixed rate mortgages are not as flexible as s. If , one will not be able to take advantage of these savings unless they refinance. Also, the interest rates on fixed rate mortgages tend to be higher than the starting rates of adjustable rate mortgages (ARMs).

Adjustable rate mortgages have lower initial rates, but then rise after a set period of time. This means that ones' payments are lower initially but rise as interest rates grow. This may be a good choice if one doesn't plan to stay in their house very long, or is having difficulty paying their mortgage, due to a short term circumstances, such as a layoff, a new baby, etc.

This option might give individuals a year or two to catch up financially before they are required to pay the higher payments that will follow the initial low rates of the adjustable rate mortgage.

Fixed and adjustable rate mortgages are two very different financing options. Fixed rate mortgages work well for those who like to be able to predetermine their financial outlays as much as possible. They are also a great choice for those who don't necessarily like to take financial risks.

Adjustable rate mortgages work well when interest rates are low, when one doesn't plan to stay his/her property for very long, are unable to make initial large mortgage payments or are simply looking to save money. When making a borrowing decision, it is important to take proper inventory of ones' level of risk, financial plans and personal tolerance. For more information on getting better Mortgage Rates and great money-saving Mortgage Company tips, and resources, visit http://www.lenoxnationalmortgage.com ]]> Should You Refinance Home Mortgage Interest Rates? http://www.artwoo.com/article/should-you-refinance-home-mortgage-interest-rates http://www.artwoo.com/article/should-you-refinance-home-mortgage-interest-rates#comments Wed, 05 Sep 2007 17:15:00 +0000 mortgage interest ratesrefinance home mortgagehome mortgage interesthome mortgage interest ratesmortgage interest ratemortgage termreduce your monthly payment http://www.artwoo.com/article/should-you-refinance-home-mortgage-interest-rates
If you're thinking to refinance your mortgage, consider first if refinancing is well worth the time and money that you would have to invest in the process.

The following are some of the reasons homeowners decide to refinance home s.

1. Refinanced rates are typically lower.

Homeowners opt to refinance their homes once interest rates dip. For example, if under your present , you have to pay 8 percent, then a interest rate of 5 percent would certainly be preferable. Note, however, that refinancing does not come free of charge. Carefully negotiate your refinancing terms as closing fees might end up costing you more.

2. Refinancing result in lower monthly payments. Lenders who issue adjustable-rate mortgages, or ARMs, give out low initial rates to lure borrowers. However, these rates dramatically increase after a period of one to five years. Most homeowners who find themselves in this predicament opt to refinance home mortgage interest rates to lower their monthly payments.

3. Refinancing home mortgage interest rates give you a new repayment period. When you refinance, your mortgage clock is rewound. Weigh your options carefully, however. While refinanced home mortgage interest rates will , it will increase the amount of interest which you will be paying over your loan's lifetime.

4. Refinancing home mortgage interest rates reduces debt. You could obtain a cash-out refinance by using the equity you have accumulated. What this means is that if you have a high-interest debt, you could save thousands of dollars because of the repayment. The problem with this, however, is that you are simply substituting one form of debt for another. In the end, you still owe someone something.

5. Refinancing home mortgage interest rates yield greater return on investment. Refinancing your home mortgage interest rates could allow you to make other investments. How? Think of it this way. All your cash goes to house payment. Consequently, you don't have money to put into a prime investment market. If you refinance home mortgage interest rates, you could use the extra funds to set up an investment portfolio. Subsequently, not only would you be able to keep your house, you would have a long-term source of income as well.

Undoubtedly, there are merits to refinanced home mortgage interest rates. Refinancing can be quite costly, however, so you should consider all options and weigh the pros and cons carefully before deciding to go that route.

In the end, the question of whether to refinance or not is one you and you alone could answer. Want to refinance your home mortgage interest rates ( http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html )? Visit our site now and read up more on bad credit loan mortgage rate ( http://www.whataboutloans.com/mortgage/mortgage-loans.html ) and mortgage lender rates ( http://www.whataboutloans.com/mortgage/mortgage-lender.html ) prevailing in the market today. ]]> Saving A Fortune With Your Mortgage http://www.artwoo.com/article/saving-a-fortune-with-your-mortgage http://www.artwoo.com/article/saving-a-fortune-with-your-mortgage#comments Sun, 17 Dec 2006 10:27:27 +0000 fixed rate mortgageadjustable rate mortgagemortgage paymentsmortgage paymentnecessarilyinterest rateinterest rates http://www.artwoo.com/article/saving-a-fortune-with-your-mortgage
The type of mortgage you take out can make a great difference to you.

Paper or plastic? Car or SUV? Rent or buy? Perhaps one of the biggest decisions you will ever make is whether to take a fixed-rate or .

So what exactly is the difference between these two types of mortgages? With a , your payments are the same for the life of the loan.

Regardless of inflation or other economic factors, your will never change. Many people choose a fixed rate mortgage because of the stability it offers.

With an adjustable rate mortgage, ARM, your payments will vary depending on the . Lenders favor this type of mortgage because the interest rate of the mortgage changes based on other economic factors.

Even with ARMs, there is an initial period in which the interest rate is fixed. After that period the interest rate will adjust a periodic basis, usually annually.

In nearly all cases, the initial principal and interest payments on an adjustable rate mortgage are lower than that of a fixed rate mortgage. This is the aspect of the ARM that leads many homebuyers to choose this type of mortgage over the alternative.

If you can get a lower monthly payment with an ARM for as many as ten years, then the ARM is the best choice, right?

Not . Before you decide to choose the Arm based solely on the initial monthly payments, consider the future.

There is a good chance that could increase once the initial fixed period of the ARM expires.

If this happens will you be able to afford the monthly payments on the loan? Of course, this depends on your current job, the length of time you plan to remain at that job, and the likelihood of raises in the future. Many people's homes end up in foreclosure because they were unable to make their when interest rates increased. You should assess the risk of this happening to you before choosing one type of mortgage or the other.

How long do you plan to remain in the home? If it is less than five years, then an adjustable rate mortgage is the best choice. Overall you will end up paying less with an ARM in that period of time than you would if you chose a fixed rate mortgage. On the other hand, if you intend to remain in the home more than five years, a fixed rate mortgage is definitely worth considering.

The benefit of a fixed rate mortgage comes with the fact that the payments are fixed over the life of the loan. Because of this, there are never any surprise interest rate increases; you always know how much you are going to pay. The stable mortgage payments make it easier for you to budget from one year to the next.

On the other hand, higher incomes are generally needed to qualify for a fixed rate mortgage because the interest rate is higher. The lender needs to be sure you can afford the payments. Not only that, if, in the future, interest rates decrease significantly, you will have to refinance to avoid overpaying for your home.

Understanding the benefits and the drawbacks of each type of loan is the best way to make the best decision for you. Claim A Free e-book that will show you how you can claim free land and real estate: http://www.freelandproperty.com ]]> Variable Rate Mortgages -- Setting The Standard http://www.artwoo.com/article/variable-rate-mortgages-setting-the-standard http://www.artwoo.com/article/variable-rate-mortgages-setting-the-standard#comments Sat, 03 Jun 2006 06:32:04 +0000 interest only mortgagesmortgage interest ratesmortgages availablemortgage termbank of englandsvrannual percentage rate http://www.artwoo.com/article/variable-rate-mortgages-setting-the-standard mortgage term you should learn -- Standard Variable Rate, or . This is the interest rate you will be paying on the total amount you are borrowing. It is usually expressed as a percentage, and is different from an APR (). An APR includes all costs associated with the loan, such as interest, fees, any compulsory insurances etc.

While interest rates can vary quite widely across the board, all lenders will have a Standard Variable Rate. It's the default rate for their mortgages, and can provide a good indication of whether they are offering good deals. Comparing different lenders' SVRs is one way to get an idea of who has lower rates generally -- though there will be exceptions to this rule.

This rate fluctuates, going up or down according to the economy and the lender. The biggest factor that effects SVRs is the Base Rate set by the . In recent years this has been kept relatively low, and have been particularly good for borrowers. However, this could change and you should bear in mind that rates could go up in the future.

Many mortgages start off with special introductory rates, and then revert to the SVR after a set period. These include capped and collared mortgages. There are also 'fixed rate' and 'interest only' , which are covered in more detail further on in the guide. When considering mortgages with special introductory rates, you should also take into account what the SVR is likely to be once your initial period is over. Many mortgages come with the condition that you stick with the same one for several years, even after the special offer period is over. There will often be penalties if you want to change mortgage within this tied period.

Interest calculation, interest charging

Be aware that there is a difference between interest calculation and interest charging. Some mortgages calculate interest daily, which works out as fairer for the borrower as your overall balance is reducing every month, and therefore the interest will be reducing too (even by a tiny fraction, every little helps!). Other lenders calculate interest monthly or annually, although annual calculation should be avoided if at all possible, as you will be paying the same interest for a whole year despite your balance having been reduced by your repayments. You should also ensure that your interest is charge in arrears, rather than in advance. Joe Kenny writes for personal finance comparison sites http://www.cardguide.co.uk and also http://www.ukpersonalloanstore.co.uk ]]> The Features of a Secured Credit Card http://www.artwoo.com/article/the-features-of-a-secured-credit-card http://www.artwoo.com/article/the-features-of-a-secured-credit-card#comments Thu, 10 Jul 2008 15:43:15 +0000 bad credit credit cardsbad credit cardshigh interest ratescredit cards bad creditbad credit historycredit card billscredit credit cards http://www.artwoo.com/article/the-features-of-a-secured-credit-card Bad are ideal for individuals having a problem with their credit histories. These people are the best customers of banks, as they have to pay on mortgage, car loans and insurance policies. Above all, they do not get credit cards that easily because of their .

Such a situation becomes extremely frustrating because many individuals afford to pay monthly but banks do not approve them with cards. Therefore, there is a possibility of crisis in times when they have to make an immediate purchase, which is possible only through credit cards.

If you too have bad credit, then you can opt for . These cards may appear as standard cards but they help you to repair your credit history. The reason behind this is that the companies submit your credit details to the credit bureau who decides your credit score. If you make the payments on time, you eventually get an opportunity to improve your credit record through bad credit credit cards.

Comparing Features:

Bad credit cards Type 1:

These types of cards have low interest rates. More often, you will come across companies who charge you with initial fees of $29, which is not that pricey at all.

A typical bad card has a one-time fee of $124, annual fee of $48 and $6 per month as account maintenance charges. This makes the cost of your bad credit credit card to total of $244.

You need to opt for such cards when you cannot obtain other secured credit cards.

Bad credit credit cards Type 2:

These types of bad cards have high interest rates. Initial fee of these cards are $29. It carries monthly maintenance charges of $6.50 that brings the price of these credit cards to $107. The yearly fee of $150 makes these cards even more expensive.

Bad credit credit cards Type 3:

These cards have average annual fees and interest rates. Individuals simply need to pay only the initial fees, which can vary depending on their credit scores. Annual fees for some cards can be as less as $39, while for others it may be $79. Here, people do not have to pay monthly fees, that is, these types of cards are best for people having utterly bad or no credit scores.

Overview:

There are significant differences between all the bad credit credit cards that we have analyzed. Among these, cards of type three offer the best value. No matter which card you choose, if you make your payments on time, then it will positively reflect on your credit report.

As a result, you can easily obtain loans, other cards and insurance policies at low interest rates, thereby enabling you to save many dollars.

The pathway to improve or rebuild credit score might appear a bit difficult initially but it is ultimately beneficial in the long term. Bad credit credit cards are the best way to improve your damaged credit. As long as you remember to learn from your previous mistakes, you will have no problem rebuilding your credit.Find the best secured credit cards and more of Tom's work at FINDsecuredcards.]]> How To Avoid ARM Shock Syndrome http://www.artwoo.com/article/how-to-avoid-arm-shock-syndrome http://www.artwoo.com/article/how-to-avoid-arm-shock-syndrome#comments Fri, 18 Jan 2008 22:19:59 +0000 initial interest ratesarm loansadjustable rate mortgagerising interest ratesshock syndromearm loaneconomic index http://www.artwoo.com/article/how-to-avoid-arm-shock-syndrome adjustable rate mortgage (ARM) that is scheduled to adjust sometime in the near future, it's very likely that you are beginning to experience the first signs of "ARM ". Many people take out s when purchasing a home in order to take advantage of low .

These types of loans typically have low rates for the first few years of the loan, and then they adjust at pre-determined times during the entire life of the loan. When an ARM adjusts, the interest rate can go up or down, depending on the to which the loan's interest rate is tied. The homeowners payments change along with the interest rate. Many homeowners who financed homes with ARM loans over the past few years did so with the intention of refinancing before their rate actually changes.

When it's time for the interest rate on an ARM loan to adjust, the term often used to describe the change in interest rates is "ARM Reset". This phrase accurately reflects that fact that the loan's interest rate actually resets from its current rate to a different interest rate. The new rate can be lower or higher, but typically does represent an increase. Those facing an initial RM adjustment in the near future can almost definitely expect an increase when their rate is reset.

If you have an ARM loan, the best thing you can do to avoid being shocked when your ARM adjusts is to plan ahead. Even if your mortgage is brand new, the time for your loan's interest rate to adjust gets closer with each passing day. The minute you take out an ARM loan, you need to start researching your options for avoiding problems with when it's time for your rate to adjust.

If you don't make plans for refinancing prior to time for an adjustment, you might find yourself facing a steeply increasing payment when your rate resets. When interest rates are on the upswing, people with ARM loans sometimes find themselves dealing with mortgage payments that raise so much that they can no longer afford to make the payments on their homes. It's important to take steps to avoid facing this unpleasant reality so that you don't find yourself stuck with having to cope with ARM reset shock.

While you are in the initial stages of an adjustable rate mortgage and you are enjoying the benefits of lower interest rates, it's a good idea to invest money in paying down the principal of your loan. This will help you reduce your overall outstanding mortgage balance, which can help you refinance when the time comes, and even help you pay your home loan off early should you choose to do so.

If you find yourself stuck with an increased payment due to an ARM adjustment, you are going to have to find a way to make the new payment fit into your budget, at least until you have an opportunity to refinance. The worst thing you can do is allow yourself to fall behind on your payments, because then getting a refinance to a better interest rate might become impossible. If your payment is going to increase and you don't have time to refinance before the adjustment kicks in, you're going to have to make budget cuts to deal with the higher payments until you can get a new loan. To avoid finding yourself in this situation, don't let yourself lose sight of the need to plan ahead to avoid "ARM shock syndrome". For more information on all things http://www.refinancingright.com/ please visit our main site Refinancing Right. Becoming an informed consumer it by far the best way to protect yourself from unethical loan providers that don't have your best interest in mind. ]]> Use A Low Interest Credit Card And Save http://www.artwoo.com/article/use-a-low-interest-credit-card-and-save http://www.artwoo.com/article/use-a-low-interest-credit-card-and-save#comments Mon, 04 Sep 2006 18:27:05 +0000 0 apr credit cardlow interest credit cardlow apr credit cardcredit card debtinterest credit cardsometimes a greatbig money http://www.artwoo.com/article/use-a-low-interest-credit-card-and-save
If you use your wisely you can save some by taking advantage of credit card transfers. With a balance transfer you can take advantage of initial low (teaser) rates that are offered by major credit card companies. Teaser rates are usually good for three to six months after you receive the card.

Rates can range from 0% to 9% and they are beneficial to people who have large debts on credit cards with higher interest rates. By transferring the balance from your existing high interest card to the low interest credit card, you will save big money on interest.

So how do you succeed at the balance transfer game? If you follow these steps and pay attention to the warnings, you can save a great deal of money in interest.

First, this is not for everyone. This strategy is for people who are reasonably sure they are going to pay off their total within the introductory period. When you switch to your low interest credit card (also known as a or ), the initial term is usually for six months. When that period is over, the interest rate will go up, deal. If you are able to pay your total credit card debt off within the initial period, the card will be very beneficial. However, if you are unable to clear the total debt within the introductory period, your monthly payments will increase. This can greatly reduce any benefits you would have gained during the initial period.

Second, shop around for your low interest credit card offer. Choose a card that waives transfer charges for balance transfers in the initial promotional period. Be sure to remember that most banks treat credit card transfers identical to cash advances. Also, the transfer may be subject to daily interest fees, which can add up quickly and often there is no grace period where interest isn't charged. The costs of transferring a large balance in these cases can be astronomical.

Always read the fine print when applying for a credit card. Be aware of the term 'flat balance transfer', which will cost you fees on all balance transfers. You must be knowledgeable of the cost of all balance transfers. If you find nothing on the credit card application, ask a banking representative if there are any flat balance transfer fees.

Next, take advantage of the credit card grace period. Transfer the balance on your high interest card to the low interest credit card before the payment due date that appears on your bill. Most credit card companies offer a grace period of between 25 and 30 days. After the due date, interest is charged on the outstanding balance. If you transfer the balance before the due date, you will save money on interest. Some credit card companies offer no grace period. In this case, you are charged interest from the moment you charge an item or from the day you transfer your balance. Do not apply for credit cards that do not offer a grace period.

Now that you have transferred your balance to the low interest credit card, you will begin to receive your monthly bill. Always pay before the due date and always pay more than the minimum payment, which is the lowest payment you can make if you wish to keep your card and your credit history in good standing. Why? Because minimum payments usually pay only the accrued interest or a portion of it. That means the principal remains at the same amount that it was before you made your payment. You will not be able to pay off your total credit card debt within the low interest introductory period. And that defeats the purpose of using the balance transfer strategy.

Balance transfer to a low interest credit card is a good short term strategy, but don't use it over an extended period of time. The key is to take advantage of the low interest introductory period to save a great deal of interest while you completely pay off your balance.

You, and only you, are responsible for your credit card debt. Use your low interest credit card wisely and it can save you hundreds or thousands of dollars each year. Thomas Erikson is co-founder of http://www.your-debt-consolidation-loan.com/ which provides http://www.your-debt-consolidation-loan.com/low-interest-credit-card.html information and solutions. ]]> Interest-only Home Equity Loans - Is It Smart? http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart#comments Fri, 01 Sep 2006 00:27:04 +0000 home equity loansequity loancredit cards interestbeneficialperiodsamount of moneyoptions http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart equity loan, homeowners have several . Usually, loan applicants select loan packages that offer affordability, which generally consists of low monthly payments. For this reason, adjustable rate are popular because they offer low initial rates. Homeowners may also choose an interest-only home equity loan because they offer similar low rates.

What is an Interest-Only Home Equity Loan?

Second mortgages or home equity lines of credits are types of home equity loans. Both options pledge your home as collateral. Ordinarily, home equity loans have fixed terms and interest rates. Because of low rates, these loans are more ideal than credit cards.

Interest-only home equity loans offer the same benefits. The only difference is that homeowners are allowed to make interest-only for a specified time frame. During this period, the monthly payments are considerably lower. Interest-only periods vary. The average length is usually one to seven years. However, some lenders will offer interest-only periods up to ten years.

Advantages of Interest-Only Home Equity Loans

If borrowing a small and selecting a short interest-only period, these loans may not present future risks. In some instances, homeowners who intend on selling their property will apply for an interest-only home equity loan, use the money to improve the property, which boosts the value, and then re-sell. In this instance, interest-only home equity loans are .

Disadvantages of Interest-Only Home Equity Loans

Many homeowners are attracted to interest-only home equity loans because of low monthly payments. Yet, it is vital to consider the pros and cons before selecting this option. Eventually, homeowners will have to begin paying the principle balance. If opting for an interest-only home equity loan option, it's better to select a shorter period, perhaps one or two years.

Those who choose a longer interest-only period may be hit with significantly higher monthly payments. If this happens, affording the payments may prove challenging.

Of course, homeowners also have the option of refinancing for a standard fixed home equity loan at the conclusion of the interest-only period. Visit http://www.homeequitywise.com for more information on an Interest Only Home Equity Loan. ]]> Interest-only Home Equity Loans - Is It Smart? http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart#comments Mon, 23 Apr 2007 08:40:04 +0000 home equity loanhome equity lineshome equity loansrate home equityinterest only home equity loanbeneficialperiods http://www.artwoo.com/article/interest-only-home-equity-loans-is-it-smart home equity loan, homeowners have several options. Usually, loan applicants select loan packages that offer affordability, which generally consists of low monthly payments. For this reason, adjustable rate are popular because they offer low initial rates. Homeowners may also choose an interest-only home equity loan because they offer similar low rates.

What is an Interest-Only Home Equity Loan?

Second mortgages or of credits are types of home equity loans. Both options pledge your home as collateral. Ordinarily, home equity loans have fixed terms and interest rates. Because of low rates, these loans are more ideal than credit cards.

Interest-only home equity loans offer the same benefits. The only difference is that homeowners are allowed to make interest-only for a specified time frame. During this period, the monthly payments are considerably lower. Interest-only periods vary. The average length is usually one to seven years. However, some lenders will offer interest-only periods up to ten years.

Advantages of Interest-Only Home Equity Loans

If borrowing a small amount of money and selecting a short interest-only period, these loans may not present future risks. In some instances, homeowners who intend on selling their property will apply for an interest-only home equity loan, use the money to improve the property, which boosts the value, and then re-sell. In this instance, interest-only home equity loans are .

Disadvantages of Interest-Only Home Equity Loans

Many homeowners are attracted to interest-only home equity loans because of low monthly payments. Yet, it is vital to consider the pros and cons before selecting this option. Eventually, homeowners will have to begin paying the principle balance. If opting for an interest-only home equity loan option, it's better to select a shorter period, perhaps one or two years.

Those who choose a longer interest-only period may be hit with significantly higher monthly payments. If this happens, affording the payments may prove challenging.

Of course, homeowners also have the option of refinancing for a standard fixed home equity loan at the conclusion of the interest-only period. Visit http://www.homeequitywise.com for more information on an . ]]> Credit Cards With Low Interest Rates http://www.artwoo.com/article/credit-cards-with-low-interest-rates http://www.artwoo.com/article/credit-cards-with-low-interest-rates#comments Thu, 14 Sep 2006 00:27:06 +0000 low interest rate credit cardcredit card balancecredit card debtcredit card ratesrate credit cardinterest ratescredit card products http://www.artwoo.com/article/credit-cards-with-low-interest-rates credit card products is by offering them low or low interest rate introductory offers. While low interest rates are great for consumers, do your homework so that you're not surprised with high fees or short term low interest rates that jump sky high after the introductory period is over.

It's hard to turn down a credit card with 0% interest, but as they say, there is no such thing as a free lunch. While credit cards with low fees are great for consumers, banks need to make their money in some way and have a way of finding revenue by adding steep fees and only offering low interest rates for the short term.

For instance, you might sign up for a credit card with 0% interest for 6 months, only to find that at the end of that period, the interest rate jumps to 15%. During the first 6 months, you used that specific card very often thinking you are getting a bargain. Unfortunately, now that your is higher than before you will be paying a high interest rate and not getting such a great deal. If you want to avoid high interest rates and high , avoid traps such as the one above. Low interest rates are great, but in the long run an introductory offer can hurt more than a stable .

Low interest rates that last for more than 6 months or a year are usually given to consumers with the best credit rating. If you have good credit, you can usually count on being offered good with low fees, for people with bad or poor credit expect a moderate or high interest rate.

There are instances where consumers can use low or no interest rate introductory offers to their advantage. One is to purchase an item that you have the money for in the bank, you can easily pay it off in six months and don't have to use your savings as it accrues interest. This might work for a high priced TV or vacation. Another instance, low or zero percent interest rates can work for you is if you have a high credit card balance on another card. You can transfer the card to the new card, no longer paying your high interest rate each month. This alone can save you a few hundred dollars over the course of six months or a year. Connie Barker is the owner of several financial websites including http://www.directcreditcardservices.com/credit-cards-with-low-interest-rates.html ]]> Adjustable-Rate Mortgage Payment -- Things You http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you#comments Fri, 02 Jun 2006 12:32:15 +0000 adjustable rate mortgagemortgage paymentmortgage paymentsfixed rate mortgagesinitial interest ratesinterest rate increasenewspaper ads http://www.artwoo.com/article/adjustable-rate-mortgage-payment-things-you newspaper ads showing astonishingly low rates are for real. These ads are what we call adjustable-rate s.

Loans with an adjustable-rate mortgage payment type usually have low rates only for a short time. Rates of adjustable-rate mortgage payment are adjusted on a regular basis, usually after the first year is over. This means that the interest rate and the amount of the monthly adjustable-rate mortgage payment may vary, going either up or down.

With adjustable-rate , there is little chance of you knowing what your future monthly payment would be. Some types of adjustable-rate mortgage payments have limits to the interest-rate increase. When an adjustable-rate mortgage reaches a certain percentage, the interest rate will no longer increase for the duration of that period. But at the end of that period, the adjustable-rate mortgage payment will vary once more.

Determining whether or not an adjustable-rate mortgage payment is the right type of loan for you usually depends on your financial situation. Also, it depends on the type of adjustable-rate mortgage payment you plan to make. Adjustable-rate mortgage payments have characteristics that might ultimately prove risky in the long run. Because the dynamics of interest rates in the market are never certain, the amount of your adjustable-rate mortgage payments are uncertain as well.

Adjustable-rate mortgage payments generally have lower compared to fixed-rate mortgages. This makes an adjustable-rate mortgage payment more affordable and easier on the pocket. Adjustable-rate mortgage payments may also help you qualify for a larger loan. This is due to the fact that lenders sometimes decide to extend a loan provided that your current income is steady and your adjustable-rate mortgage payments for the first year are up-to-date.

Another advantage of having an adjustable-rate mortgage payment type of loan is that it could turn out to be less expensive in the long run. With an adjustable-rate mortgage payment, the chance of interest rates going higher is equal to its chance of going lower. Now here in also lies the risk of having an adjustable mortgage payment.

When it comes to having an adjustable mortgage payment, there are no guarantees. It is either the interest rates will lower down or it will rise up. Lower interest rates mean lower monthly adjustable-rate mortgage payments. Higher interest rates mean higher monthly adjustable-rate mortgage payments for you. There is no middle ground. Adjustable-rate mortgage payments are basically a trade-off -- you exchange more risk for lower rate with an adjustable-rate mortgage payment.

But despite this, there are some ways to circumvent the risks and increase your chances of landing a good investment in an adjustable-rate mortgage payment. Below are some questions you need to consider:

• Is there a possibility that my income will rise up enough to cover higher adjustable-rate mortgage payments should interest rates go up?

• Is there a chance that I might take on other sizable debts like a loan for a car or school tuition in the near future?

• Will my adjustable-rate mortgage payments increase even though interest rates remain the same?

• How long do I plan to own this home? (If you plan on selling soon, an increase in interest rates should not be a problem for your adjustable-rate mortgage payment.) If you're set on greatly increasing your odds at discovering how to exploit the profit potential of real estate.... Then this may be the most important website you'll ever see! Go to http://www.fsbodomination.com and you may reproduce this article as long as there is an active hyperlink accompanied with it. ]]> Adjustable Rate Mortgage - Salvation Or Financial Trap http://www.artwoo.com/article/adjustable-rate-mortgage-salvation-or-financial-trap http://www.artwoo.com/article/adjustable-rate-mortgage-salvation-or-financial-trap#comments Wed, 11 Jul 2007 15:24:59 +0000 variable rate mortgage30 year fixed mortgagefixed rate mortgage30 year fixed rate mortgageyear fixed rate mortgagemortgage optionsinterest rate http://www.artwoo.com/article/adjustable-rate-mortgage-salvation-or-financial-trap
It's not easy to see but there is a wide mix of funding options available to home buyers today. Brokers, banks and other lending institutions have an amazing variety of from traditional 30 year fixed to the less conventional but ever more popular 2 year adjustable rate mortgages.

How do you decide what option is best. Of course, that depends on your current circumstances. A few key factors will include your credit score, how long you plan on staying in your home and whether you have money for a down payment.

The traditional 30 year will give you the peace of mind of knowing that the of your mortgage is not at the whim of the ever changing housing market. On the other hand, if interest rates drop it will cost you thousands in refinance charges to refinance your mortgage to a lower rate and if your financial or credit situation has changed you may no longer qualify at the best rates.

An alternative to the traditional is the adjustable or - also known as an ARM. An ARM is different than a fixed mortgage because the interest rate is normally dependant upon some type of index (i.e. the 10 year Treasury Bill). ARMs come with an initial lower interest rate and monthly payment - that's their appeal, but with the lower initial rate comes additional risk because the interest rate is based on index rates that are subject to change.

On the other hand, you also have the potential to benefit if interest rates fall but rates normally have to fall quite a bit for you to realize any savings due to a number of reasons beyond the scope of this article. Just be aware that the odds of your rate dropping, is very low regardless of what interest rates do.

There are advantages to obtaining an adjustable rate home mortgage other than the initial lower monthly payments. Factors include: if you intend to pay down a big portion of your mortgage principal early or if you anticipate higher income in the future or if you would like to completely payoff your mortgage as quickly as possible. The initial lower interest rate of an adjustable rate mortgage allows you to apply more of your monthly payment to the principal.

You should understand the risks associated with an adjustable rate mortgage before agreeing to one so be sure to ask your lender to explain the interest rate ceilings or caps associated with the loan so that you are not blindsided a few years down the road with a much higher mortgage payment because your interest rate just jumped 2 points.

A viable option if you have little income flexibility is to ask your lender about payment caps. Payment caps can help to stabilize your monthly payments during periods of interest rate fluctuations. However, on the down side, this option can result in negative amortization on your loan. Negative amortization occurs when the balance of your mortgage increases because your mortgage payments are not big enough to cover both interest and a portion of the outstanding principal.

Clearly there are both pros and cons of adjustable rate mortgages but one option you may want to seriously consider is an option that allow you to convert your mortgage to a fixed rate if interest rates go against you. In most instances, this option will cost you some money but the fee is much less than a full refinance and could potential save you thousands of dollars and bunch of stress.

For options in finding the best mortgage, new or refinance, check out the links below. Visit http://www.eyeonsubprime.com or http://www.eyeonsubprime.com/links.html or http://www.eyeonsubprime.com/sitemap1.html for more information on home loan options. ]]> Fixed Or Variable Rate Mortgage? http://www.artwoo.com/article/fixed-or-variable-rate-mortgage http://www.artwoo.com/article/fixed-or-variable-rate-mortgage#comments Wed, 23 Aug 2006 06:27:18 +0000 variable rate mortgagefixed rate mortgagemortgage ratesmortgage ratevariable mortgagefixed mortgageprime rate http://www.artwoo.com/article/fixed-or-variable-rate-mortgage
A means that you buy into a mortgage at one rate (often the current market , which can be about 1% below the ) and you will pay that rate until you have either paid back your mortgage, or have decided to move. Any move with a mortgage means that you will have to renegotiate and refinance.

A is one that changes with the interest rates as they fluctuate. However, you generally agree to one monthly payment. Say, for instance, that you agree to a monthly payment of $1000. Perhaps $700 of that is going to pay the capital investment (the initial money that you owe) and $300 is going to pay the interest. If the interest rates rise, you will still pay $1000 each month, but only $600 will go to cover your capital, and $400 covers the interest. This means that it will take you a longer time to pay back your mortgage if the interest rates rise. Conversely, if you have a variable rate mortgage and the interest rates fall, you can shorten the time it will take you to pay back your rates. Of your monthly $1000, you could end up paying $800 to the capital and $200 to the interest.

The difficulty with variable is that nobody can predict how interest will move. In the early 2000s, mortgage rates hit an all-time low. This meant that if you had chosen a variable rate mortgage in the 1990s, you would have done very well and paid your house off quicker than if you had chosen a . However, if you chose a variable rate mortgage in 2002, your interest rates have been steadily going up, and you are possibly looking at the long-term financial forecast with horror. You can refinance your loans to fix yourself into a lower rate. Ask your bank what the penalties for refinancing are, and discuss your options with a banker.

A fixed rate mortgage offers home buyers the comfort of knowing exactly when they will be able to pay off their mortgage. Some home buyers would prefer to avoid the stress of having to watch the interest rates to pay off their home.

One type of variable rate mortgage is an adjustable rate mortgage. This might mean that your mortgage rate is calculated every year, or every six months. Your payment plan might even hinge on the interest rates. In this case, this means that if you have an adjustable rate mortgage and the interest rates rise, your payments might rise as well. Talk to your banker to see if the interest rates will affect your monthly payments.

Interest rates have been slowly but steadily increasing over 2004, 2005, and 2006. There has been a slight increase in the number of houses that go into default recently as well. Financial analysts agree that this trend is only going to continue for the coming years, which means that more and more people might find it harder to pay off their mortgages. Consider your financial situation and your future prospects. Be sure to choose the mortgage that works best for you, both in the short term and the long term. With a little research and planning, you will be able to make informed financial decisions that will benefit you and possibly save you thousands of dollars. Morgan James is an editor of http://www.theguideto-loans.com/home-loans-and-mortgages/, an information site devoted to helping people understand how to effectively use their finances. ]]> Low Interest Credit Cards - Why Are They Popular? http://www.artwoo.com/article/low-interest-credit-cards-why-are-they-popular http://www.artwoo.com/article/low-interest-credit-cards-why-are-they-popular#comments Tue, 11 Nov 2008 03:15:32 +0000 air miles rewardsinterest rate cardcash rewardsinterest cardsinitial balancecard applicantsinterest card http://www.artwoo.com/article/low-interest-credit-cards-why-are-they-popular interest rate cards don't make an assumption that all the credit cards are made equal. Fact is unless you are spending a bit of time by researching to find best card deal that you cannot finish up with the low interest rate just like you have planned. Like any other buy it is shrewd to do comparison-shopping even though it is just a low . Best card must be one that gives both low interest rates on the purchases and cash advances. Word of care while comparing the low interest rate card deals and offers, few cards might just offer lower interest for six months or else for move. What at first seemed like best low interest rate card can abruptly credit nightmare if you sit on large balance at an end of introductory period.

But, there are people who do not need low interest rate cards. And this group is one who, for most part can utilize their card in a same way as charge card, and will pay full balance on account on due date every month. Keep in mind there is not any interest charges that is added to the credit card account seeing you make full balance expense on the statement by due date. Thus it will make no variation what rate of interest was applied to the card if you utilize it in this particular way. Thus low interest rate card will not be a fine deal to this particular group of cardholders. As these individuals are likely to get attracted by the other card tenders like and cards.

Low interest rate card will absolutely help you slow down rate where your card debt get builds up. Therefore low are more attractive to group of individual, who are sure just in making the part payments on credit card account balance every month.

One more group of in hunt of low interest rate cards will be one who want to merge their whole debt from the other cards on new credit card. In this example low interest rate card might be much more wanted, since they will naturally be looking to decrease their monthly promise, and it will make little sense to move the debt to credit card with high interest rate that is attached to it.

So need for the low interest rate cards is been felt more by group of people. But, it is worth thinking that he low interest rate card is normally offered simply to those candidate with good credit score. Clearly the credit card issuers will make very less profit from the credit cardholders with very low interest rate credit card that means that risk factor raises. This is a reason why card issuers can just offer low interest rate credit card to the cardholders with proven track proof in the repayment of the credit card.Find bank accounts, cd rates, money market rates, credit cards, and more of Tom's work all at GOtalkmoney.com]]> Which Mortgage Is Best For You. http://www.artwoo.com/article/which-mortgage-is-best-for-you http://www.artwoo.com/article/which-mortgage-is-best-for-you#comments Wed, 27 Dec 2006 04:27:10 +0000 adjustable rate mortgagesfixed rate mortgagesballoon mortgagescurrent interest ratesmortgages fixed rateinitial interest raterising interest rates http://www.artwoo.com/article/which-mortgage-is-best-for-you


Now, you must decide what type of mortgage is best for you, and if you've never bought a home before then the terms can be confusing.

Many factors must be considered when selecting the right mortgage. Most importantly, borrowers must understand how the different types of mortgages are structured.



The three most common types of mortgages are , , and .

An adjustable rate mortgage (ARM) is structured so that the interest rate is not locked down.



Usually, the introductory rate is set for about 5 to 7 years, at which point it will be adjusted either up or down, depending on the .

After the initial rate adjustment, ARMs are usually adjusted every two years for the remaining length of the loan. Interest rate adjustment is usually capped at about 2 percent, meaning that the interest rate cannot be adjusted more than that each time.



ARMs are also set with a maximum adjustment rate. If the maximum adjustment rate is 7 percent, that means that the highest rate the borrower ever pays is 7 percent above the on the loan.

Fixed rate mortgages (FRM) are just that: fixed. The interest rate will never be adjusted.



These mortgages offer the lowest risk to the borrower, because they protect from . If the life of the loan is 30 years, then the borrower is protected for 3 decades from fluctuations in the market.

Drawbacks of FRMs are two-fold. If interest rates go down, you are locked into a higher rate. And often FRMs carry higher loan costs, because they carry high risks for the lender.



If a lender signs you to a 30 year FRM at 6 percent interest, and then interest rates continue to rise, the lender is locked into accepting 6 percent interest for the life of the loan.

Balloon mortgages operate quite differently, and are structured so that there will be a balance at the end of the term -- usually 5 or 10 years -- that must be repaid.



Some balloon loans only require that you pay the interest during the loan term, which means monthly payments are often very low, but at the end of the loan the original balance will be due in full.



Another type of balloon loan calculates payments as if the loan were to be paid in full over 30 years, which does reduce the balance at the end of the term.



Still, this type of loan must be refinanced after the loan term is up. Balloon loans can be beneficial if the borrower expects to resell the house at a profit before the ending balance comes due.

The type of mortgage you select depends largely on your plans for the house. Are you planning to live in it long term or short term?



Do you expect the property to appreciate rapidly? Keeping your long-term goals in mind will help you choose the mortgage that is right for your unique situation. Robert Michael is a writer for http://www.domusproperty.com which is an excellent place to find property links, For more information go to:domusproperty.com ]]> Mortgages And Interest Rates http://www.artwoo.com/article/mortgages-and-interest-rates http://www.artwoo.com/article/mortgages-and-interest-rates#comments Tue, 18 Apr 2006 12:50:04 +0000 fixed rate mortgageadjustable rate mortgagemortgage ratesyear fixed rate mortgageinterest ratesinterest rate trendinterest rate changes http://www.artwoo.com/article/mortgages-and-interest-rates Interest rates can affect the type of mortgage you choose and dictate when it's wise to make a change. Here are a few of the factors that can be affected by a swing in interest rates:

Choosing a mortgage When interest rates are rising, a fixed-rate mortgage is usually a good choice, since it locks in the current rate and protects you from the higher rates to come. When rates are falling, an adjustable-rate mortgage (ARM) becomes more attractive, as its periodically (usually every one, three, or five years), allowing you to benefit from the new, lower rates.

Some people choose an ARM even when rates are rising. This is because the interest rate on an ARM is substantially lower -- as much as two percentage points lower than that of a 30-year fixed-rate mortgage. That means you'll pay less until have increased a full two percentage points. After that, you'll pay more than a fixed rate.

There are also hybrid ARMs, which have a fixed rate for a certain time period -- typically three to 10 years -- and then become adjustable. (A 5/1 ARM, for example, has a fixed rate for five years, after which the interest rate is adjusted annually.) Hybrid ARMs can be the right choice if rates are likely to rise in the short-term but then flatten or fall. However, these long-term trends can be difficult to predict.

Refinancing A change in the can make it worthwhile to switch to a different type of mortgage. When rates are falling, you can save money by moving from a fixed-rate to an adjustable-rate mortgage, so you can benefit from the lower rates. If interest rates appear set for a sustained rise, switching from an ARM to a fixed-rate mortgage can lock in a lower rate and protect you from higher payments. However, you should make sure that any closing costs don't offset the benefits of refinancing.

For more information on mortgages and interest rates, visit http://www.lendingtree.com/cec/yourhome/yourmortgage/interest-rate-trends.asp">http://www.lendingtree.com/cec/yourhome/yourmortgage/interest-rate-trends.asp? The editorial staff at LendingTree is committed to helping consumers become smarter borrowers. Visit http://www.lendingtree.com/cec for more information and tips on buying, selling, and financing a home. Copyright 1998-2006, LendingTree, LLC. ]]>