Fixed-rate mortgages have interest rates that stay the same for the entire loan term.
You will have predictable monthly payments throughout the life of the loan.
You'll be protected from rising rates.
Fixed-rate loans are a good refinance option when rates are low.
Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions.
The initial rate is fixed for an introductory period (usually one to ten years), and is typically lower than for a fixed-rate mortgage. After that the rate adjusts annually or semi-annually depending on the product and based on a market index, but can't go above a predetermined adjustment cap.
Because of the lower initial rate, ARMs can be a good way to refinance when rates are not especially low.
Renovation loans can provide a good alternative to taking out a second mortgage for borrowers who are planning home improvements.
The amount you can borrow is based on the projected value of your home after renovation.
You can finance the repayment of your additional mortgage, and get extra cash to fund your improvement project.
