Always keep your mortgage rates flat or fixed. As you will be unable to pay your mortgage if it is at an adjustable rate, and the loan market has gone high and you have lost your job. You will not be able to tide over such a crisis situation. Keeping it fixed will let you take advantage of the stability in loan rate. In case you feel you are getting loans at a better rate, you can then switch over to an adjustable mortgage or apply for a refinance mortgage to enjoy the current low rates.
Even if you think you can afford a shorter duration loan say, 15 year you must not opt for it. Instead go for a 30 year loan as you can pay twice the loan amount when you can afford to pay and cover up the repayment amount soon. Thus, you will not face any risk of paying it off within a short term when you have lost your job or faced a financial crisis. One has seen loan rates go high and then fall back after a credit crunch. It has dropped down to 0.5% in the recent days. Therefore, it is unpredictable what the loan rates can be in future. Learn how to act wise what ever the situation is, you should know to quickly refinance your loan at low rate when you realize that you are paying high on your loans.
Consolidating different loans is also an option to win better rates on your funds. Instead of paying back multiple loans you deal with all your multiple ones with one big loan at better loan rate. Make use of your equity if it has gained an increase in equity value ever since it was last used. Economists foresee that loans will begin to march up from the middle of next year according to reports 17th october 2009. Your loan rates are also based on other factors such as your financial status, the financial company you opt for and of course the collateral or security you are offering against the loan amount.
Consider the repercussions of not paying on time. If you are not on time to pay back the loan installment then lender can seize your home. One fine morning you become homeless. This dangerous possibility is decreased with the help of mortgage refinance. Replace high adjustable rate mortgage with fixed rate mortgage refinance for better rates on loans. Remember that owning a home is a dream but losing it is a nightmare in itself.