My little forum on mortgage calculator
Banks offer higher interest rates for fixed rate mortgage loans than for adjustable rate mortgages to cover for this eventuality. A convertible home mortgage loan is initially an adjustable rate loan, but you may convert to a fixed rate at any time during a set period in the duration of the loan. This is a good type of loan to choose if interest rates are high but are expected to drop. You can enjoy the comparatively low interest rate of an adjustable rate home mortgage, then lock in an attractively low fixed rate for the rest of the life of the loan. A balloon home mortgage begins with an unusual introductory period during with you pay a fixed rate that is almost as low as that for an adjustable rate mortgage loan, instead of paying the higher interest rate of a normal fixed rate loan.