The new terms are negotiated (tenure, interest rates, fees, etc), and the loan is used to repay your loan first home.

The disadvantage is that it may also slightly increase your annual percentage rate.

Many homeowners have chosen a variable rate mortgage to continue to enjoy lower rates in the near future.

With a Connecticut FHA mortgage you may have an interest rate of six per cent on a fixed FHA mortgage thirty years.
Another way is to use your shorten unreserved conceivable without your heart, five centuries out of your term.
Some borrowers often get a refinance rate home loan to modify the variable interest rates to fixed.