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Fixed Rate Mortgage
Should You Switch To A Fixed Rate Mortgage?
This is a very tough time for any business because it's a sluggish economy. That means that businesses are competing more than usualy to keep up with their usual numbers and that includes banks. The current interest rates have dropped dramatically and have actually reached an all time low.
If you have an adjustable rate mortgage you should strongly think about refinancing your loan to a fixed rate. Right now the rates for both are about the same so it shouldn't be a big difference in your monthly payment. Any ARM rate right now doesn't have very much room to go down which defeats the purpose of having the loan int he first place.
I recommend using my free mortgage calculator to compare your adjustable rate to a new current fixed rate mortgage. The calculator will help you determine how much money you will save over the length of your mortgage term.
When you have an ARM rate you are at risk at the beginning of each year of having your interest rate go up 2%. It can go up 2% per year with a cap of 6% total for the loan. Take another look at any interest calculator on my site to see the difference in your monthly payment if you add 6% to your interest rate. You will be amazed at the increase in payment that your might have in the future.
Right now the fixed rate is about the same as the adjustable rate and might even be lower than the rate you have on your mortgage now. So I recommend talking to your bank to see how much it would cost to refinance your loan and then check your savings per month to make sure it's worth it. If you can get a lower monthly mortgage payment then it will benifit you in many different ways.
My mortgage calculator will help you analyze your monthly payment along with tips to help you save on your mortgage over time. There is also an amortization schedule available if you need to see how much principal is going toward your mortgage balance each month. You can see how much interest you will save as well if you add $10 to your principal. It ends up working out to a lot more money than you think. | 
