I have a 7/1 30-year fixed rate. What happens after year 7?

There is no such thing as a 7/1, 30 year fixed rate mortgage. It's either a 7/1, in which case it will adjust after year 7, or it's a 30 year fixed, in which case it will not adjust and stay the same for the full term. It cannot be both.

For many years, this kind of loan was referred to as a "7 year fixed" rate which is why so many people are confused (and why legislation has now been inacted that correctly identifies this as an adjustable rate loan). So, here is what you have; You have a 30 year loan where the interest rate is fixed for the first 7 years. After that 7 years it becomes an adjustable rate, which means that the interest rate can change. In most cases it can only adjust 1% each year. For example: lets say you have a 4% rate right now. That 4% interest rate stays the same for the first 7 years. On the 7th year, it could adjust to a 5% rate. The next year it could adjust to a 6% rate. Of course it could go down too, but not very likely. Usually there is a maximum it could adjust over the life of that loan, but that could be up to a 10% variance, which means on the 17th year it could by up to as much as a 14% interest rate. With rates dipping to all times lows right now, it might be a good time to look at refinancing into a really low fixed rate and get out of that 7 year adjustable. Call me. I lend in all 50 states. Toll Free 855-823-2781