Mortgage rate data from FreeRateSearch.com shows little difference between fixed and adjustable subprime mortgage rates.

Milwaukee, WI (PRWEB) May 31, 2007 — Consumers holding adjustable rate loans may be tempted to refinance with another adjustable rate loan for a smaller payment, but the savings are not worth the risk, warns mortgage rate search engine http://www.freeratesearch.com/ With an estimated $1 trillion dollars in adjustable rate mortgage (ARM) debt resetting in 2007, and about $650 million of that in subprime loans, many homeowners are at risk of refinancing into another risky ARM unless they know all the options available to them.

According to data released today by FreeRateSearch.com, the gap between the best subprime ARM and 30-year fixed rate loan is too small to justify the additional risk of the ARM. FreeRateSearch.com is a free website that allows consumers to search and compare multiple mortgage loan programs anonymously, and get custom rate quotes for any type of credit.

If you are in a dangerous ARM because you didn’t know a decent fixed rate loan was available, don’t let it happen again

FreeRateSearch.com offers the following example* for a subprime loan customer:

Comparison of Best 2 Year ARM vs. Best 30 Year Fixed
Best 2-year ARM: 7.550% rate, $1,756.60 payment
Best 30-year Fixed-Rate Loan: 7.89% rate, $1,815.28 payment

The difference in payment between best 2-year ARM and fixed rate loan is only $58.58 per month, but the risk associated with the adjustable rate loan is significantly higher. [read more]