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When you apply for a second mortgage, know the difference between fixed-rate loans and adjustable rate mortgages. If you have a fixed-rate loan, mortgage rates do not change, no matter how many years you pay off the loan. Adjustable rate mortgages, or ARMs, allow for mortgage rates to vary over the life of the loan.
If you apply for an ARM, find out first how the mortgage company changes the interest rates. You want to find out how often the company changes the mortgage rates and its basis for determining rate changes.