Mortgage refinancing A review of the basics
* Payments are designed to pay off the entire mortgage loan gradually over the term of the loan. * The size of the monthly payments for fixed rate loans remains the same across the entire term of the loan because the interest rate does not change. Because the interest rate for adjustable rate loans fluctuates, the size of the monthly payments fluctuates proportionately. * Average interest rates are often higher than the interest rate for a comparable non amortizing loan during the non amortizing loan's grace period. * Designed for homeowners who plan to own the property long term.