Join me on the topic of refinance
To make variable rate loans even more attractive, many have a feature in which the homeowner can choose to convert the loan from a variable to a fixed rate loan to lock in especially low interest rates when rates fall. * Fixed rate: A fixed rate does not change over the life of the loan. Mortgage loans with fixed rates have payments of equal amounts from the beginning to the end of the term of the loan. Fixed rate mortgages are best for when the prevailing interest rates are low and are expected to rise shortly. Taking out a fixed rate loan when rates are low locks in the low rate for the life of the loan, even when market rates rise.