7 Types of Mortgages

Here are a few mortgage refinance tips to help you get started. For more detailed information please go to my personal debt elimination blog where I write about tips and ways to get out of different kinds of debt, including mortgages, student loan debt, credit card debt and others.

1. Reverse mortgage funding - basically, the older we get the bigger the increase in terms of living expenses. This is why many elder people often opt to do a reverse mortgage in order to cover those expenses. This kind of mortgage would typically work for people who have their homes fully paid for and have no mortgage on it. In simpler terms, reverse mortgage would actually allow you to receive a stipend which you will get every month from the equity carried by your home.

2. Interest only mortgage options - these are designed, specifically, to decrease the amount you pay during the first few years of your mortgage term. Basically, for the first few years of your mortgage, you are only paying for the interest thus making the subsequent mortgage payments much lower.

3. Fixed rate mortgage - fixed rate mortgages are very good if the interest rate is low. When applying for this kind of mortgage, make sure that you immediately lock the interest rate that suits you. This way you make sure that you actually get the lower rate.

4. Mortgage loan modification - the Obama administration has a program that they launched earlier this year. It is called the Make Home Affordable program. You can apply for a loan modification to reduce your payment or your interest rate.

5. Adjustable mortgage rate 411 - if you opt to use this kind of mortgage then there are some things that you should be aware of. First off, know when the first rate adjustment would happen and just how much it would be. This would help you prepare. Second, find out what your index rate is associated with so you can do your own research about it. Lastly, know all of the available options to you when it comes to refinancing. This would help you choose the best one.

6. Flexible interest only mortgages - for especially those who put self discipline in high regard, this could be the most practical and suitable choice. This would provide you with a payment arrangement that is flexible in terms of the payments you are obligated to make. Flexibility is the keyword here as we all appreciate that.

7. Mortgage refinancing - which is especially for those who already have a mortgage but would like to have it refinanced and get a lower interest rate. With the Obama stimulus package, refinancing is one way to go to reduce your mortgage debt.