There is no simple answer to this question because each person will need to consider their unique situation, goals, and financial objectives. If you are looking for low monthly payments, an adjustable rate Louisville mortgage may be a good fit. However, if you want to pay off your mortgage quickly, these loans may not be for you. And if you want to incur a lower interest rate, you will need to avoid these loans as much as possible. Below are some details that will assist you in selecting the right home loan for yourself.

It is important to remember that the lowest interest rate will not always be the best mortgage loan. So the objective to remember here is to find a home loan that is going to fulfill your specific personal objectives.

Fixed vs. Adjustable Rate Mortgages

The first type of mortgage is the traditional fixed rate mortgage, in which your interest rate will not change for the entire term of the loan. Some loans will require a period of time that is commonly between ten and fifteen years. During this time, your monthly payment will remain unchanged. This is a good example of a long-term bank pay package.

The second type of mortgage is an adjustable rate mortgage. In this loan, your interest rate will fluctuate with the prime lending rate. There are many lots of common adjustable rate mortgages on the market and many homeowners are finding themselves in trouble each month because their loans started out with very low rates. This was not the homeowner’s intention but can happen to anyone.

Home Loan Modifications

Some homeowner’s had financial difficulties in the past that they were unable to pay their mortgage. Maybe they lost their job at the time or maybe there was an issue with their home that caused a significant decrease in its value. If this is your situation, there are a few programs available to you. The FHA has a HOPE program that actually restructure a home loan to make it easier for the homeowner to pay. There are no payments down, no interest rate adjustments, and the principal balance is either reduced or the loan brings down the cost of the home.

The most common modification on hand in 2010 is the Interest Rate Reduction Modification. This is accomplished by reducing the interest rate down to as low as 2% so that the homeowner is able to pay their mortgage and stay in their home.

No down payment is required in the modification process. The payments must come from, which the homeowner pays the bank. These payments may include fees as well. The homeowner will have the choice of fixing the problem by making a larger monthly payment or they may leave the home in nearly the same condition as before, pay the bank with a separate cash payment, and purchase a new house in the future.


If refinancing and cash out is not an option for you, then a re-scheduled mortgage may be a great option to consider. A re-Schedule is a mortgage that is restructured so that virtually the same loan rate remains in place. The main difference is that if you are late on your mortgage payments, your loan interest rate may be higher.

Re-mortgaging can seem like a hassle at the time because you may need multiple services taken on at one time. However, it can be negotiated if you notify the potential lender of a need to re-schedule you and also negotiate a lower interest rate.

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