In an effort to keep people in their homes and encourage more home purchases, the Federal Reserve’s actions to reduce interest rates have been a success. Many homeowners have taken advantage of low interest rates and have purchased homes or refinanced their current mortgage. However, prospective homeowners who have not taken advantage of the savings should consider acting soon because many industry analysts say the low interest rates may soon end.

Mortgage interest rates have seen an astounding drop to as low as 4.5 percent after President Obama’s mortgage refinance stimulus plan was announced as well as the Federal Reserve announcement last November about their plan “to buy as much as $500 billion of securities backed by Fannie Mae (FNM.P), Freddie Mac (FRE.P) and Ginnie Mae.” Mortgage experts are now warning that the low interest rates for mortgages are not going to last. Celia Chen, senior director of housing economics at Moody’s Economy.com in West Chester, Pennsylvania says, “The downward trend we have seen in mortgage rates will not last beyond the first half of this year.” She continued to say, “By then, the Federal Reserve’s program will have run its course and other issues will move to the forefront that could push mortgage rates higher.” Chen also said, “By the first quarter of 2010, rates should be at 5.87 percent.”

The reasons the interest rates will start to increase include an increase in government debt and a positive outlook that the economy is beginning to rebound. This may be the perfect time to secure a mortgage or refinance an existing mortgage because as the economy begins to recover, interest rates will begin to rise. For instance, economic analysts have recently reported that “last year, the yield on the 10-year treasury was only about 2%. Recently, there has been an increase to over 3.5%.” The result will be that interest rates on loans and mortgages will start increasing again. As well, 30-year loan interest rates have seen a jump. Recently, the average interest rate rose to 5.27%. This is up from about 4.75%.

Greg McBride, senior financial analyst at Bankrate, Inc, in North Palm Beach, Florida, says, “Expectations of a 30-year fixed-rate mortgage at 4.50 percent are too ambitious. Inflation worries may begin to spook investors and that could send Treasury yields higher, which would cause a corresponding move in higher mortgage rates.”

Cameron Findlay, chief economist at online loan broker LendingTree.com in Charlotte, North Carolina, says “mortgage rates at 4.50 percent remained possible, but not probable.” As well, Moody’s Economy.com has forecasted interest rates at “4.5% by mid 2009 after dipping to a low of 4.37% in the second quarter. In the third and fourth quarter, rates are expected to rise to 4.57% and 5.18 %.”

If the increase in interest rates continues, people who are considering refinancing an existing mortgage, buying a new home, or selling their new home, may miss out on a great deal if they wait too long. This may be the best time to lock into a low interest rate mortgage.

Living in a house that’s in sad disrepair can be a drag. It does sap your energy when you look at stained vinyl floors, peeling paint, and a gloomy kitchen. A refinance home loan can do wonders for a house that’s screaming for a makeover.

Double Whammy with A Refinance Home Loan

If you’re roused from sleep by the leak from the ceiling that’s also showing signs of rotting and peeling paint, it’s time to fix the roof, not push your bed to a corner to place a basin on the spot to catch the drip. Perhaps your kitchen is an eyesore with dishes and pans crowding out each other on a narrow counter and a jam-packed crockery cabinet. Don’t let your mortgage sit prettily, get a refinance home loan to give your house a makeover it deserves.

A home loan refinance also gives you a crack at a mortgage with lower interest rates. If your mortgage is on its fifth year, you’ve already deducted thousands of dollars from your balance. This can maneuver a mortgage that’s smaller than your initial loan. A lower monthly payment becomes possible because of reduced interest rates. Plus you can pay off your initial mortgage and have the cash you need to do some home improvements.

The further federal cuts in interest rates may be good for your existing adjustable rate mortgage. Interest rates are at the lowest. This is a good time to get a home loan refinance BUT approval will depend largely on your credit score. However, some banks or lending institutions may be able to work it out with you.

The amount of your home loan refinance will be determined by your credit score and the current assessed value of your home. Of course, you won’t be doing a Hollywood makeover for your little home. But you can do a makeover that will be the envy of your neighbors – without cleaning out your pockets. A dash of creativity and ingenuity can stretch your home loan refinance proceeds.

Home Improvement on A Budget

If your roof has leaks, have it inspected and assessed by a professional. Perhaps it will only entail the replacement of roofing materials on a small area. The affected ceiling can be restored to its previous state with some tricks of the trade.

You can have the kitchen refurbished with more cabinets and the walls freshly painted with warmer hues. Have your cabinet refaced and drawers added. This is cheaper than having a new set of cabinets. Update your lighting fixtures and change the sink and kitchen faucet set. The baths can be buffed up with minimal cost. Change the toilet seat covers and re-grout dingy and chipped tiles. Rid the stained bath floor and install vinyl flooring and a fresh coat of paint on the bath walls will work magic. Voila! The transformation will be incredible.

Make the Switch Now

If the current value of your home is appraised at $200,000 and you own $100,000, your equity is $100,000. With your refinance home loan, you can opt for cash out to do some minor home makeovers. Who knows? You might be moving out of the house with a buyer ready to take over. Just in time when you’ve done a good job with your home improvement. It does pay to be ready for any eventuality.

Talk about your requirements with your loan agent to switch from an ARM to a fixed rate mortgage. You want an interest rate much lower than your current mortgage and the cash out option. Review or repair your credit score so you can get the best rates in town. Mortgage companies are adapting stricter controls and the best gauge to assess if you’re a good risk is your credit score. If your credit score is good, your refinance home loan will be approved without a hitch.

Let’s face it: if you’re like most people, you don’t enjoy shopping, either. And when it comes to mortgage interest rates, the shopping experience will likely be all the more miserable due to, among many other factors, their constantly changing status, as if trying to keep up with a variable-speed treadmill. Unfortunately, this is one purchase that absolutely demands lots of browsing and tire-kicking, as not knowing all that can be known could very well wind up costing a whole lot of money, not to mention more headaches, even.

In general, refinancing is one of the truly great ways to lower mortgage interest rates. Some folks even refinance several times to take advantage of constantly dropping rates! Naturally, one could just keep waiting for rates to keep falling, but that’s really just gambling, as there’s no guarantee that rates will continue to fall – not to mention that there aren’t any guarantees that rates won’t just rise all of a sudden, either. It would be wise to develop a good relationship with a trustworthy mortgage broker, whose business it is to keep up with the latest market trends and such. Expert advice can be useful, though there is again the option to refinance if rates do fall substantially lower!

Whatever you choose, some amount of independent research and analysis of your own will definitely be needed. To start with, know that it isn’t even necessary to take any money out of your equity; you can just shorten the term of your loan or use any money already saved. Remember, the goal in refinancing is to secure a better deal, and not simply to withdraw some cash or equity from your current one!

Indeed, should there be any movement in money at all, you might think about buying down your mortgage interest rates. That’s when money is taken and poured into your home, say, thereby reducing your principle and then, in effect, reducing the interest rate. In other words, you are just investing in your home’s equity, which is never a bad idea – only, as ever, make sure to shop around!

Of course, it’s most helpful of all to have just negotiated the lowest mortgage interest rates in the first place. While there are various strategies for obtaining low rates, the best one is, obviously, to have them already secured to begin with. That’s why shopping around is so important! Let the banks and brokers compete for your business. Play them off against each another. Yes, it can feel very awkward, and even downright painful, but it’s absolutely necessary when seriously shopping around. You either want the best deal or you don’t!

If you have ever considered refinancing your home mortgage, now is the time. You likely realize that mortgage interest rates have reached a record low. Hence, taking action to obtain a lower rate or convert to a fixed rate is wise. After deciding to refinance a mortgage, your next big decision involves selecting a good lender. Because various lenders offer refinancing, there are several options available to you.

Request Quotes from Your Current Mortgage Lender

Before refinancing, you should fully understand the process. Refinancing involves more than simply acquiring a better mortgage rate. If you make the decision to refinance, you will create an entirely new mortgage. With this said, homeowners should anticipate paying closing costs and other mortgage fees.

If you refinance with your current mortgage lender, it is possible to have some fees waived. For example, the lender may not charge a fee for title search, appraisal, application, etc. In some instances, the lender may offer to pay these fees as a part of the negotiation. The aim is to keep you as a customer.

Contact Individual Mortgage Companies

If you have good credit, you may get approved for a low rate refi with little effort. Nonetheless, it is vital to compare quotes and offers from more than one lender. Comparing lenders is very necessary if you have bad credit. Some mortgage lenders do not specialize in bad credit loans. Hence, a person with poor credit will pay much higher fees.

To avoid this problem, research lenders that offer bad credit mortgages, and request quotes from these lenders. By comparing rates, fees, and terms, you can quickly identify a bad refi loan. Remember, the primary objective of a refi loan is to secure a better home loan. Avoid refinance loans that will not save you money.

Find a Lender with a Mortgage Broker

The easiest and ideal way to locate a good lender is through a mortgage broker. Regardless of your income, credit, etc, a broker has the ability to locate the best loan. In fact, brokers present their clients with several loan offers. Upon receiving your information, the broker will match you with potential loan programs. Before making a decision, you should carefully review each offer. Thus, you are aware of estimated refinance rate, monthly payments, terms, closing fees, etc.

The present home loan interest rates continue to generate much discussion and excitement among professionals involved in the real estate industry. The current low home loan interest rate is beneficial to real estate agents, mortgage lenders, home appraisers and inspectors, tax advisers, homeowners, and economists. Compared almost with any time in the last decades, terms for financing homes are still really good.

The first time home buyer or whoever is investigating the real estate industry will need to be fully conscious of the current home loan interest rate because a difference of just a few percentage points can make the huge dissimilarity in monthly mortgage payment.

Homeowners who are thinking about shifting to larger homes because of their growing families can also benefit from today’s market. Also, people who currently own homes can benefit in today’s market by refinancing the existing balance of their mortgage. It would be a good idea and can save money if the rate is at least a percentage point lower than the mortgage rate. The refinancing also makes it possible for the homeowner to take an advantage of the equity which they have accumulated in their home. The refinancing also could mean to cut down the overall length of a mortgage to lower current home loan interest rates, hence saving money on interest payments.

Some local newspapers and online websites such as http://www.RateDetective.com.au carry the terms of these types of contracts. A home loan buyer can also come into contact with a loan representative at his local bank. Certainly, current home loan interest rates are also easily available on the website such as http://www.RateDetective.com.au. Also, many websites present instant data for individual zip codes. Some websites offer the simple online forms to potential home loan buyer to fill out so that the home loan lenders can quote an individualized home loan rate. Looking into the last decades and present real estate situation, the current home loan interest rate is very advantageous whoever is planning to buy dream home.

If you are planning and interested to buy a home for you or your child and would like to have a look on home loan interest rate, log on to http://www.RateDetective.com.au. With Rate Detective, you will be able to evaluate multiple home loan rates from world class life insurance companies.

The mortgage interest rates you are offered will be one of the primary ways you will determine which mortgage lender to use when you purchase a home. When you are quoted a rate, most mortgage lenders are actually giving you what is called an adjustable interest rate, which means it can change over time. So how can you lock in a mortgage rate, rather than fall prey to the changing economy?

What does “Adjustable” Mean?

Most interest rates are adjustable, not fixed. That means that the mortgage rate you “locked in” when you signed your mortgage contract is not necessarily going to stay the same over the life of the loan. There are a number of different things you want to look at when you originally agree to an adjustable mortgage rate, or AMR:

• The Initial Rate: This is the starting point for your interest rate
• The Adjustment Period: This is how often the rate will change and the monthly payment amount will be recalculated
• The Margin: This is the number of percentage points added to the interest rate in your specific case, and it should not change over time. (more on margins below)
• Rate Caps: Your mortgage lender caps the amount the AMR can change over a certain period of time and over the entire life of the loan (more on rate caps below)

Basically, mortgage lenders use an index to come up with an initial interest rate. A margin is then added, based on your credit and other factors (for example, you might be paying index + 1%). As that index fluctuates, so will your interest rate.

Caps on Interest Rates

Never sign a mortgage agreement with an adjustable interest rate if there is no clause about caps. With an interest rate cap, your lender is free to change your interest rate whenever they want to make more money, which is not fair to you. There should be two caps specified. The first should be a cap on how much the interest rate can rise over the course of a short period of time (usually between one and five years). The second, higher cap should limit how much the interest rate can rise over the entire life of the loan. Some caps specify the percentage points an interest rate can rise, while others specify how much your total monthly mortgage payments can rise. Either is fine – just make sure your contract has such a clause.

How can you get a Fixed Interest Rate?

Adjustable interest rates are not your only option in the mortgage world. The opposite of this kind of interest rate is the fixed interest rate, which is, as the name implies, an interest rate that is locked in and does not change. Fixed interest rates are not tied to any kind of index, though an index may be used to determine your rate initially. The advantage to locking in your interest rate is that you know exactly how much you will owe every month on your mortgage, and it will never change unless you refinance. Will you save money with a fixed mortgage rate? Maybe, but that is not always the case. Initially, fixed rates are usually much higher than adjustable rates, since the mortgage lender is compensating for the index’s rise that is certain to happen over the life of the loan. However, if the index does jump high, you will be saving money, since your interest rate will still be low.

Prepayment Penalties

Whether or not you lock in a rate, your mortgage agreement will likely have a prepayment penalty clause. When you have a fixed rate, this is likely a flat fee, while if your rate is adjustable; it may be calculated based on the index.

Essentially, a prepayment penalty is a fee that you have to pay to a lender if you pay off your loan early. Usually, this only applies to people who pay off the mortgage extremely earlier, not people who pay it off a month or two ahead of schedule. Lenders make money through interest, so if you pay off the principle of the loan early, you are avoiding paying the rest of the interest that would have compiled. When you have a fixed interest rate, you will likely be responsible for a penalty that covers a percentage of the interest you would have had left. If your rate is adjustable, the penalty could be calculated based on the current index, based on your initial interest rate, or based on a combination of factors.

Homeowners in Canada are at present refinancing their mortgages at a brisk pace. Since January 2009, the Bank of Canada has brought down its overnight lending rate considerably, letting banks as well as mortgage lenders to provide a prime lending rate of 3%. Both fixed as well as variable rates are at their historical lows and well lower than the regular mortgage interest rates of the last few years. A lot of consumers are ready to pay penalties levied by their bank or mortgage lender to refinance current mortgages and make the most of lower payments and cut interest costs on the entire debts they owe.

Across Canada on the whole and especially, Toronto and GTA areas in the last 5 years have witnessed a mad rush of property buying activity. Home prices increased swiftly, letting equity to increase to a greater extent. Mortgage refinancing is one of the best choices to take advantage of present equity and repay debts like higher interest mortgages, credit cards along with personal loans. By lowering monthly mortgage payments and trimming down payments on unsecured debts like credit cards, home owners can make use of the additional monthly cash flow to pay back their mortgages earlier using pre-payment privileges provided by nearly all lenders in Toronto. One more popular approach is using low interest mortgage rates and a mortgage refinance to back home improvement plans to raise property values.

To start the refinancing procedure, initially get in touch with a mortgage broker to talk about your current mortgage and own monetary facts. A mortgage broker will assess with you the amount of money that can be saved on overall interest costs by refinancing, in addition provide you a road map for paying down your mortgage earlier. Mortgage brokers in Toronto have access to several lenders and can offer you with not just the lowest mortgage rates but as well different mortgage products personalized to your requirements. As a general rule, a Toronto mortgage broker will be compensated by the lender preferred to finance your new mortgage refinance with, hence not charging you any broker fees.

To be eligible for a mortgage refinance in Toronto, your credit score and record is the most crucial thing. Banks and mortgage lenders are seeking FICO scores of at least 620 and above to meet the criteria for the lowest mortgage rates. The higher your score, the better prospect you will have to be approved at low rates. Other vital things that will be considered are your income and employment record in addition to your income to debt and loan to value ratio. At present, you can refinance up to 95% of your homes’ assessed or market price, however, it’s best if you have at least 20% of equity.

A normal mortgage refinancing process in Canada can be closed in just about 14 to 21 working days. A property lawyer will be necessary to close the deal. The normal cost of legal services across the country is roughly $750 to $900, relying on the amount of payments and additional related fees involved.

There are choices when dealing with home mortgage rates. One rate is definitely the appropriate one for your mortgage needs. It is best that you consult with a lender to better understand the different rates and mortgage programs and how the right one can be a great help to your loan needs.

Fixed home mortgage rates of 30 years is one of the most popular loan options. With this kind of rates, the borrower is given the chance to buy the property and then be able to pay back the loan over the term of 30 years. Despite the long duration of payment, the rate of interest is fixed and will likely to remain the same from the start of the agreement up to the last payment of the loan.

Fixed home mortgage rates of 15 Years is more or less similar to the 30 year fixed rate mortgage. However, it is to be paid totally within the next 15 years. This type of mortgage fixed rate loan is effective in giving you the opportunity to save enough dollars

Adjustable Mortgage interest rates is payable either 15 to 30 years. The appeal of such loan is that the rates are really low at the start. However, it should be known that as the economy fluctuates, so do the culprit. The rates are adjusted on an annual basis or every five years. When rates increase, obviously the home mortgage installment will also increase. Adjustable mortgage should be chosen if the person will stay living on his property for a long time.

For more home mortgage rates and other mortgage and loan articles, do visit us at Refinance Home Mortgage for You blog.

An adjustable rate mortgage, or ARM as it is popularly known as, is a mortgage loan[1] in which the interest rate on the note[2] is periodically adjusted based on a variety of indices[3]. Different lenders use different indices to calculate their interest rates, or their adjustable rates. Some of the commonly used indices are the 1-year constant-maturity Treasury (CMT) securities, the Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR). However, a few lenders prefer to use their personal or own indices to determine the rates. Lenders may choose to do this to avail a steady margin from the borrower, and their own cost of funding is related to the index. As a result, the payments made by the borrower may also change over time in accordance to the fluctuations in the resultant interest rates. Typically, the adjustable rate mortgages are characterized by their index and their limitations on charges or caps[4]. In many countries, the adjustable rate mortgages are the standard means of availing finance by offering the homes as securities, and in such cases, the credit facility is simply referred to as a mortgage.

Basic features of ARM or adjustable mortgage
The main features of ARM are:

1. The initial interest rate
   It is the rate of interest associated with the ARM at the time of conception of the loan facility. The initial ARM rate is generally well below the existing current ARM market rates charged during subsequent years.
2. The adjustment period
   This is the actual length of time, of the total loan period of the ARM, which is scheduled to remain constant or unchanged. The interest rate is reset at the end of the adjustment period, and the monthly loan repayment options are recalculated.
3. Index rate
   Majority of the lenders prefer to associate the ARM mortgage interest rates changes with changes occurring in a particular index. As stated previously, lenders generally set the ARM rates on a variety of indices. The most common index rate used is one, three, or five years treasury securities index. Another commonly used index is the national or regional average cost of funds to savings and loan associations index.
4. The profit margin
   The profit is calculated by adding a certain percentage of the loan amount to the amount of the base index rate. The difference of the net payable loan amount minus the base index amount is the actual profit enjoyed by the lender in an ARM.
5. Adjustments and interest rates
   ARMs provide a unique adjustment period for borrowers during the inception of the loan facilities. The rate structure can change at the end of the adjustment period. However, several lenders provide more than one adjustment periods. It is possible for the borrowers to change certain aspects of the net payable interest rates with each new adjustment period. So there is an advantage to avail different interest rates with individual adjustment periods. If the borrower is market savvy, he or she can select different indices or interest rates and save money, provided the lender agrees to the rates and indices.
6. Initial discounts
   Initial discounts are interest rate concessions, and are very commonly used as promotional aids to attract customers for ARMs. Such discounts are only offered during the first year of the ARM loan. The discounts help to reduce the interest rate below the prevailing rate for a certain duration of time so the borrower can save some money through temporary reduced rates.
7. Negative amortization[5]
   Ideally, the net chargeable interest rate decreases with a regular payment of monthly dues against any credit borrowings. In case of mortgages the rates decrease over a period as loan pay offs occur. However, in case of ARMs, the reverse happens, and the mortgage balance actually increases whenever the ARM base index rates climb up. As the ARM base index increases in magnitude, its associated interest amount and repayment cap also increases, and the borrower ends up paying a greater amount to redeem the loan. This is a negative feature of ARMs and the borrower may suffer a certain loss over the loan tenure until redemption occurs.
8. Conversion to a different loan format
   ARMs have an agreement according to which the borrower can convert the ARM to a fixed-rate mortgage at designated times. This is often a fall back facility in case the ARM does not work in the borrowers favor and the buyer wants to revert to a safe option of a steady rate of interest.
9. Loan prepayment
   In majority of loans and credit facilities, lenders prefer the borrower redeem their dues as soon as possible, to recover the original lending amount. However, in case of ARMs a prepayment can result into a potential loss for the lender in the long run. So lenders generally include a clause in the ARM agreement which may force the buyer to pay special fees or penalties in case the borrower decides to pay off early. ARM prepayment terms are usually negotiated in the beginning before the credit facility is availed.

Summary
Even though ARMs have a low starting interest rate, there is no indication that the future cost of borrowings will be maintained at the same rate, since the base index rate is likely to change. If the indices rise, the net ARM cost will also be higher, and the borrower will have to pay a higher loan amount. So there is an inherent risk involved with ARMs. Certain studies indicate that on average, the majority of borrowers opting for adjustable rate mortgages save money in the long term.

Legend

[1] A mortgage loan is a specific type of loan, which is secured by some property or a fixed asset value having a certain financial value through a lien, or a legal written commitment empowering the creditor to sell the security offered in order to recover the outstanding dues, in case the creditor is unable to pay or redeem the borrowed amount. The word mortgage when used alone, in day-to-day life, is often used to convey a mortgage loan.
[2] A written promise to repay or redeem a specified borrowed sum of money, along with its interest at a predefined rate and length of time.
[3] An index rate is a widely used rate of interest generally used by lenders to set the interest rate on loans and credit cards.
[4] Loan capital or amount.
[5] Amortization is a gradual reduction in the value of an asset or liability by some predetermined process. In case of loans, it means a gradual or specific decrease in the magnitude of the net payable interest amount over a period, until the entire loan amount becomes void and is deemed as paid.

To some, the interest rate is a rather meaningless number that seems to change on an almost daily basis. However, if you are applying for a credit card, buying a new car or applying for a mortgage, this number can significantly affect how much you are paying every month and over the term, or length of your loan. At the time of writing, mortgage rates are low and it is a good time to buy a home, or refinance an existing mortgage at a lower rate.

The interest rate is defined as the amount of money it will cost you to borrow a certain amount of money from a bank or lender. It is virtually impossible to accurately predict mortgage interest rates; one of the biggest factors that influence them is simple supply and demand. If more people are buying houses, more money is being borrowed, which means that lenders can charge higher rates to borrow the money. In a slow economy, less people are borrowing money, rates are generally lower to attract customers, and there is more money to lend.

The mortgage interest rate affects you both in the short term and the long term. A rate that is lower means that your monthly payments are lower; it also means that over the term of the mortgage, you are paying less. Whereas the traditional mortgage is taken out for a period of 30 years, a lower rate means that you may perhaps be able to take out a shorter term mortgage, of 20 or even 15 years. Also, it means that you will own your home outright, sooner rather than later – a big advantage.

The total amount that you will end up paying for your home can potentially vary a great deal with even just a small change in the interest rate. A reduction in the interest rate of just one point can mean that a homeowner with a traditional 30 year mortgage can enjoy average savings of around $50,000 over the term of their mortgage. And a small increase in the interest rate of just one or two percent can result in monthly payments that are anywhere between $50 and $250 higher, depending on how much your home cost to begin with.

When it comes to buying a home and taking out a mortgage, you basically have two options – a fixed rate mortgage (FRM) or adjustable rate mortgage (ARM). An FRM is the safer and more stable option – the interest rate on the loan doesn’t change, regardless of whether interest rates in general go up or down. The obvious disadvantage of an FRM is that the interest rate may be lowered; resulting in you making higher monthly payments than you would otherwise be doing, unless you refinance. It’s estimated that around 70% of all homebuyers today take out a fixed rate mortgage, rather than go with the riskier adjustable mortgage.

If you have an FRM at a higher interest rate and rates go lower, your only option to take advantage of the lower rate is to refinance. Some financial experts will tell you that it is only worthwhile refinancing if the interest rate on your new mortgage will be at least 2% lower than your current rate, although of course the decision whether to refinance or not is up to you. You should also take into account how long you are planning to stay in your current home – if you are planning to move within a year or two, it probably doesn’t pay you to refinance.

An ARM is the riskier of the two options – as the name suggests, the interest rate can vary, depending on the interest rate at the time, meaning that your monthly payments may be higher or lower. If you have a good rate to begin with and you can afford to pay the extra payment should interest rates rise, this may be a good option for you. If an increase in interest rates will hurt you financially – or if you are just the cautious type who doesn’t like to take risks – an ARM loan perhaps isn’t a good idea.

So if you are applying for a mortgage, pay particular attention to the all-important interest rate – it can potentially save you or cost you a lot of money over the next 30 years.