Basics

Many people recently got mortgages that are not up for adjustment.

Their loans were only fixed for 2 years or 3 years and now these borrowers face their loan turning adjustable and their monthly payment soaring.

You have several options to refinance out of your current adjustable loan. These loan options include:

* 30 year fixed
* 30 year fixed, 10 year interest only
* 5 year interest only
* 40 year loan

30 Year Fixed

This is the traditional safe loan. The interest rate never changes for the life of the loan. This is the most payment stability you can get in a mortgage.

This type of loan usually has the highest interest rate and monthly payment.

30 Year Fixed, 10 Year Interest Only

This is the same as the 30 year fixed loan, except that the first 10 years require only an interest payment. This is lower than a regular payment. It has the advantage of interest rate stability with a lower payment up front.

5 Year Interest Only

This is a loan that is fixed for only 5 years and requires an interest only payment. If you plan on keeping the property for only 1 year or 2 years than an interest rate that is stable for 5 years might work for you. This loan usually has a lower interest rate than a 30 year fixed rate.

40 Year Loan

This type of loan stretches your payment out so that you don't pay as much as a 30 year fixed.