The two most popular current mortgage rate plans that consumers can choose from are fixed mortgage rates and adjustable mortgage rates. Traditionally, most home loans have had a fixed rate in the past. In recent years, the adjustable loan has become a popular type of current mortgage interest rate plan for many homeowners and homebuyers. People who get adjustable rate mortgages for their homes may be first time buyers, those who plan to sell the home a few years after purchasing it, or people who are looking to keep payments low for a set period of time.
Many people still prefer the fixed interest rate plans from all of the current mortgage rate options that are available to choose from. This is because they get the same interest rate for the life of the loan, and can count on the same monthly payments until they pay off the home. Some people prefer the adjustable mortgage rates, though, because they offer very low interest for the first couple of years, which may then go up. The current mortgage interest rate of an adjustable loan is especially appealing for people who plan to refinance or move before the rates go up.
There are many variations on each of these current mortgage interest rate plans. This fact can make the choice even harder for homebuyers. With an adjustable rate mortgage, for example, some loans may keep the same current mortgage rate for two years, and others may adjust after five years. And while fixed rate loans will always keep the same mortgage rates, some may be paid off in 15 years, while others may be paid off in 30 years. Today’s home buyers have a great deal of choice; more than ever before.