The borrower has the option of choosing from the different types of loans available to him. The most simple type is the fixed rate home loan which offers the advantage of fixed monthly payments that allow the borrower to better plan his finances.

Variable rate mortgages have the interest rate change according to market conditions and are pegged to an index like the treasury bond rates. The variable or adjustable rate of interest can be considerably lower or higher than the initial interest rate at different times of the loan duration. To find the best home mortgage loans and refinance lenders in Elk Grove, CA, navigate to the internet.

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Then there is the option of having both of the above rates during the term of the home loan. Usually this hybrid interest rate combines the two features of the above mortgage rates. It starts as a fixed rate then later on changes to a variable rate. 

This type of loan is currently being offered as a result of the fluctuations of the rates of interest in the market and the deep debt and credit crisis currently being experienced in the money market making flat rates difficult to maintain.

Cash Out refinancing is another option which lets the borrower trade his current mortgage for a new one and also receive some additional cash which the borrower can use to pay off his other higher interest debts. 

As a homeowner it is important to keep abreast of all that is happening within the money market to avoid losing your home. If you feel you are having trouble with your repayments then it is imperative to see your lender and work out the type of home loans that will be more affordable to you.