Mortgage : Home Loans : Refinance : Home Equity Loans

By Raynor James

If you are looking to purchase or refinance a house, you are going to quickly be overwhelmed by the language of mortgage. Here is insight to what the terms mean.

Apply for a loan for a house and you will be entering a whole new world. The terminology used in the mortgage industry is such that you might as well be on another planet. Some terms mean essentially what they sound like, but many do not. Taking the time to understand the terminology can go a long way to rescuing you from confusion.

Initial interest rate is a term that many borrowers hear and read, but do not really understand. In the past, mortgages typically came with a fixed interest rate that remained the same throughout the length of the loan. While these loans still exist, an entirely new batch of loans has become very popular. There are so many variations that it is difficult to summarize them, but many come with an initial interest rate. This term is also known as a teaser rate. Essentially, it is a low interest rate used to get you into the loan and home. While this may sound great at first glance, many people rue the day they applied for such a loan. As the name suggest, the interest rate changes after an initial period. It goes up! If the increase is significant, you can quickly run into a situation where you cannot afford to make the monthly payments. When considering these kinds of loans, make sure you know and can afford the

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Monday, November 20th, 2006 at 6:50 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.