1.   When considering a mortgage you may be offered the option of a "Convertible ARM". This is an adjustable rate mortgage with an option to become a fixed rate at a specified date. There is an additional fee for this option. Is it worthwhile? If you are planning on keeping the mortgage more than five years; and the ARM rate is considerably lower than the current FIXED rate, the answer is yes. If the time is ripe and you decide to use the option it is less expensive than refinancing.

2.   There are times when you want to refinance, or purchase a new property and because of a past credit problem you have to take a higher rate. Nobody likes this scenario, but the upside is when you make your payments on time for a year, you can refinance to a lower rate. You do have to wait 12 months, but you have the option to reduce your rate.

3.   For those of you with great discipline, here is an early payoff option for 30 year mortgages.

Each month, along with your payment, pre-pay part of the principal. Let's say with your regular mortgage payment you pay an additional $200. toward the principal. At the end of a year, you have paid down the principal by $2400; in five years by $12,000. If it's easier, do it annually. Be consistent and your mortgage will be paid before you know it. Of course, to do this your loan cannot have a prepayment penalty. Check that out, especially when you are taking on a new mortgage. Make sure your mortgage does not have a prepayment penalty clause. Another advantage in opting to do this on your own is; if times get tight, you are not committed to making the extra payments as you would be if you took a 15 year mortagage or tied into a loan program that compels you to make the additional payment in order to retire your mortgage loan early.