Purpose
Refinance Purchase Home Equity

Loan Type
Fixed ARM Interest Only FHA

Amount

State
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Display Mortgage Rates &
Refinance Rates in your State

Will My Mortgage Interest Rate Change Over The Life Of My Loan?

By Kevin Landis

Will my mortgage interest rate change over the life of my loan? The answer may surprise you. These tips will let you know what’s in store for you.

“Will my mortgage interest rate change over the life of my loan?” Many homeowners worry that their mortgage interest rate will suddenly spike on them making their monthly mortgage payment more than they might be able to afford. The simple answer is that whether the interest rate of a homeowners mortgage will change depends on the terms of the particular mortgage. The advice below will assist homeowners in determining what sort of loan they have, and whether their loan may suddenly surprise them with a higher interest rate.

I applied for a balloon, ARM, or variable rate mortgage. Will my interest rate change over the life of my loan?

Yes. All of these loan types will result in the mortgage interest rate changing over the life of the loan. With a balloon payment the rate will remain low for several years before suddenly getting much higher. These loans are typically attractive to those who plan to keep the property for a short amount of time, and thus can sell the property before the rate “balloons”. ARM rates are adjustable by nature, and can quickly surprise a home owner with a jump in rate. A variable rate mortgage adjusts with a index rate such as the prime interest rate or the LIBOR.

I have a fixed rate mortgage. Will my interest rate change over the life of my loan?

One of the main advantages of a fixed rate mortgage is that the interest rate does not fluctuate. With a fixed rate mortgage the rate is set for the life of the loan. The only way the rate would change is if the loan were re-financed with new terms.

Related posts:

1. Can My Mortgage Interest Rate Change Over The Life Of My Loan?
2. Why Did The Payments On My Fixed Rate Mortgage Change?
3. Why Do Principal And Interest Vary Over The Life Of A Mortgage Loan?
4. Can A Bank Change My Fixed Rate Mortgage?
5. Is There Such A Thing As A 5 Year Fixed Rate Mortgage?