For any type of mortgage that you may need, you will have a monthly mortgage rate. This rate will determine what you pay each month to fulfill your debt to the lender or mortgage company. There are two different kinds of rates that you'll encounter during the process of researching a mortgage and getting a mortgage quote --- adjustable mortgage rates and fixed mortgage rates.
Adjustable mortgage rates are a certain kind of mortgage rate that fluctuates, or adjusts, every month. The adjustment is in response to market forces that go up and down every day. This can be an advantage to you, as your mortgage rate can be low. If you have a high rate one month, it may be low the next. Also, most adjustable rate mortgages begin with an introductory rate that is very low. This beginning period is a great option if you want to start out paying much less than you would with a fixed rate mortgage. The mortgage rate for this beginning period is usually much lower than you can acquire with a fixed rate mortgage.
The downside to adjustable rate mortgages is that although you will periodically get very low mortgage rates, you will also periodically get much higher rates because of the fluctuations in the market. For many people, the lower rates outweigh the higher ones, but many people also decide that risk is not worth it. Your financial situation and your lender or mortgage company will be able to help you decide what is best for you.
If you currently have a mortgage and you're looking to refinance, one of your options may be to change to an adjustable rate mortgage. Many people like the idea that their rates will change and the very low introductory rate is also attractive. Whether you're starting from a fixed rate mortgage or a different adjustable rate mortgage, this option may be available to you. First mortgages, 2nd mortgages, home equity loans, VA loan, bad credit loans, refinancing, and home loans can all take advantage of this type of mortgage rate. Having to pay mortgage insurance should not affect your option to have adjustable rates, too. Work with your lender or mortgage company to decide if adjustable rate mortgages may be a good option for you.