Thursday, 16 May 2013

Switch From Vulnerable Mortgage Rate To Fixed Rate Mortgages

My husband and I have a beautiful home with lots of landscaping, a tire swing hanging from our front yard elm, and plenty of room for the kids to run around safely. We’re very lucky, although we have worked very hard for what we have. Recently, we've begun considering taking out a fixed rate second mortgage. I needed information about this subject, so I went online to my very favorite website, As usual, the site was very helpful. It clearly explained what fixed rate means, which is that the interest rate on the loan will not fluctuate for the life of it. Simple enough!

I found out that, if we go with the fixed rate remortgage, the interest rate will be higher for it than for our original mortgage loan. I also learned that the application process for the second mortgage is the same as it was for the first one: I needed to provide all the usual financial documentation and proof of personal assets that we've acquired over the past several years, and I discovered I’d need a new appraisal on the house. I had no idea that getting a 2nd mortgage would be relatively easy. Of course, having an excellent combined credit score didn't hurt us, either. also taught me what a fixed rate reverse mortgage is and how it works. A reverse mortgage is designed for senior homeowners and is based on how much equity is in the house. The reverse mortgage loan does not have to be repaid until the last member of the family either passes away or opts to sell the house. In order to qualify for a reverse mortgage, I’d have to be at least 62 years old for the FHA to supply the loan, and I’d have to own the house free and clear, no liens against it. I found all of this quite fascinating, as I’m not too far from 62 now.

While I was looking through, I also gathered information on mortgage refinance through the FHA. This may be an alternative choice for us, rather than taking out a second mortgage. We already have an FHA mortgage, so this piqued my interest. Apparently, the FHA Streamline refinance is the easiest way to refinance a mortgage. The nice thing about Streamline refinance is that it doesn't need a new appraisal of our home; it lets us use the house’s original price as its current value. There’s also no verifying of income, job, or credit score. I talked to my husband, and we chose to go this route.

I have seldom come across a more informed, user-friendly website than There are always knowledgeable representatives available to help, and its operational 24 hours a day, every day of the year. For your free consultation, dial 1-800-987-1397.