Mortgage refinancing concepts
Whatever the rate when you close the loan, that is the rate you will have until you sell the property, refinance, or pay off the home mortgage completely. Lenders usually charge marginally higher interest rates for fixed rate home mortgages as security against times when interest rates rise. This slightly higher interest rate is a premium you pay for the security of a fixed rate. On the other hand, the interest rate for adjustable rate mortgages rises and falls with the prime rate. Your interest rate and mortgage payments are higher when national interest rates are higher, and drop when national interest rates fall.