MORTGAGE RATES » Home Mortgage Loan News

When it comes to choosing a mortgage loan, many prospective home buyers hem and haw about which one they should opt for. A fixed-rate loan promises stability and no surprises whatsoever when it comes to the amount of the monthly mortgage payment. It also has the downside of locking you into an interest rate which remains static while interest rates are actually falling, and all around you your friends and neighbors who opted for adjustable rate mortgages (ARMs) are celebrating the fact that their monthly mortgage payments are falling too. Of course, choosing an ARM is risky too because when interest rates rise, so do your mortgage payments - which can really take a bite out of your wallet. In fact, oftentimes a rise in interest rates can make many people with an adjustable-rate mortgage switch over to a fixed-rate mortgage instead - this process known as conversion.

An adjustable-rate mortgage conversion is just what it sounds like: a conversion from an ARM to a fixed-rate mortgage. In more detail, to get a conversion, you simply pay a fee and your ARM officially converts over to a fixed-rate mortgage. One caveat to an ARM conversion as oppose to a fixed-rate mortgage, is that pursuant to the terms of your loan - you may get a new fixed rate, but it could be higher than current rates. In a sense, you have to pay for it. For example, if interest rates are falling to the point that you want to switch to a fixed-rate mortgage, you might not get the current low interest rate that's making you want to convert in the first place. It could end up being a point or even two points higher depending on the nature of your loan.

If you're thinking about converting your ARM to a fixed-rate mortgage, check with your mortgage loan bank to see what their offers are. Make sure you do your homework so you know what you would be getting yourself into. It's also very important to consider your finances - see what we can really afford to pay by looking into all of your monthly expenses.

In recent months the market is over-saturated with housing choices due to unprecedented quantities of foreclosed properties, alternative ways of selling are called for. Foreclosure auctions now quite popular for both consumers looking to buy owner-occupied properties and investors alike. If you're thinking about going to a home auction you should take the time to educate yourself on many factors that could help boost your chances of successfully winning a good home at a foreclosure auction.

When preparing to join in the splendor of a foreclosure auction, you need to make sure your financial documents and records are all prepared and in order. Many times pre-qualification mortgage approval letters are required to gain access into a mortgage. Remember, these homes already went into foreclosures once and banks are not interested in the next round of owners going through the same process and repeating the cycle.


Before the foreclosure auction, research the properties you are interested in thoroughly. Leave no stone unturned when it comes to investigating the comparable prices of neighboring properties, the school districts, the closest fire department and hospital. You should also consider any developments that may be going up in the neighborhood you are interested in, as well as know the condition of the surrounding area.

For those who have never gone to an auction of any kind, the experience can be overwhelming. The talk is fast, the competition is fierce, and the bargains to be had are amazing. With a foreclosure auction you must remain calm, cool, and collected so that you are able to stick to your agreed budget price. In the heat of the moment, you may be fueled by adrenaline and could even end up spending more money than you originally anticipated.

The key to being successful at a foreclosure auction is knowing the properties you are interested in, sticking to your budget, and rolling with the punches.

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