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Technically, you can take out any kind of loan and use your loan proceeds to pay off your mortgage. Viewed this way, any type of loan can be a mortgage refinance loan. However, some have restrictions (i.e. some loans do not offer a big enough credit for paying off a mortgage) so they dont make good refinance loans.

This article is about the loans you can use for refinancing your mortgage. Since these are loans that banks have specifically designed for paying off mortgages, they are also known as the common types of mortgage refinance loans that are available in the market.

According to Variability of Interest Rate

Fixed-rate mortgage refinance loan: This type of home refinance loan is one where the interest rate is locked-in to a fixed amount for the whole duration of the loan. Simply put, the home refinance loan will be kept at a constant interest rate for the whole life of the balance.

Variable-rate mortgage refinance loan: This type of home refinance loan is one where the interest rate varies with a certain, predetermined index. The interest rate, in this case can be equivalent to the index or greater than the index by a fixed margin. In this type of mortgage refinance loan, there is usually an introductory rate period where the interest rate is fixed for a few years (3 and 5 years are common) at a very low rate. After this introductory period has passed, the rate becomes a true variable rate subject to the whims of the market. However, theres usually a cap or interest rate ceiling to protect the consumers from excessive index rate increases.

According to Payment Terms

Interest-only mortgage refinance loan: This type of mortgage refinance is one where you will be asked to pay only the interest for a certain period of time. After the set interest-only payment period has passed, you will have to start making payments towards the principal.

Balloon-type mortgage refinance loan: This type of refinance loan is one with an initially low, fixed interest rate (the actual period varies from lender to lender but this period doesnt usually exceed 10 years). After the period for the low interest has passed, however, full payment is required on loan balance.

Fully-amortizing mortgage refinance loan: This type of refinancing loan is one where monthly payments are a combination of interest charges and payments towards the balance. This type of loan is ideal for people who wish to add to their equity as well as reduce the balance with every payment.

Home equity mortgage refinance loan: This type of loan is one where you actually apply for a loan using the equity you have stored in your home as your security for the loan. In this case, you give up your equity for money which you can get as outright cash or as a revolving credit line. Such a loan usually has a very good interest rate. However, this type of loan is ideal for mortgage refinancing ONLY if you have enough equity in your home to pay off your original mortgage lender. This can happen if your home has appreciated considerably. If you dont have enough equity to pay off your original lender, you will only be taking on a second mortgage, not a refinancing loan.

Title:
Mortgage Brokers and Loan Officers

Word Count:
312

Summary:
Mortgage Brokers and Loan Officers provide a much needed service to the public. There should be no shortage of business for mortgage brokers and loan officers as numerous real estate properties are bought and sold every day in the U.S.

Keywords:
mortgage, mortage banking, broker, mortgage broker, loan officer, mortgage training, broker training, mortgage loan, buyer, lender

Article Body:
Are you looking for a new career? You may want to think about becoming a mortgage broker or loan officer, or sell useful products to the existing brokers and loan officers.

If you type Mortgage Broker or Loan Officer in your search engine, you will find links to thousands and thousands of websites. This is because Mortgage Brokers and Loan Officers provide a much needed service to the public. They take applications for mortgage loans from prospective homebuyers, and help the buyers find the right loan. If you ever applied for a mortgage loan for the purchase of a home, you worked with a broker or loan officer.

A mortgage broker works on his/her own bringing a borrower and lender together for the purpose of a mortgage loan. Brokers are quite often real estate agents in addition to working as a mortgage broker. According to the Mortgage Bankers Association of America, there are approximately 40,000 mortgage brokers in the U.S.

The mortgage loan officer is an employee of a mortgage company, bank, or other mortgage lending institution. The U.S. Department of Labor reports that mortgage loan officers earned between $30,000 and $100,000 in 2005. However, highly motivated loan officers earn much more.

There should be no shortage of business for mortgage brokers and loan officers as numerous real estate properties are bought and sold every day in the U.S. The mortgage broker, loan officer field is a lucrative, well respected field that thousands of people are now in or want to start. There are also many brokers and loan officers who are interested in enhancing their present business and knowledge.

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