Now they're faced with an "exploding ARM." When the housing market was at its peak in 2006, many people signed off on adjustable-rate mortgages that started out with low rates, but after about two years or 28 months their rates are shooting up to unreasonable levels.It was a financial bomb some homeowners had two years to diffuse but didn't. Another important benefit of refinance mortgage loans is that gives the borrower more flexibility. It allows you to change loan terms from a long one to something shorter. In this way, you can pay off the principal more quickly, thus saving you from the total interest charges.
