With the lowest rates in 40 years, many homeowners are thinking of refinancing their mortgage. It pays to investigate the rates and types of loans available for a low mortgage rate refinance. Check out the rates that are now being offered online, and then contact a mortgage professional for a complete assessment of your borrowing power and the loans available to fit your needs.
You’ll want to find out if a refinance is worth it for you. There are fees associated with refinancing your mortgage, so you will want to find out if the lower interest rate and monthly payment pay off over the life of the loan. If you have equity built up in your home, you may want to tap that for cash out at a low rate. If you do not have equity, or are in a negative equity situation due to the falling market, you won’t be able to do that. But, if you are staying in your home for a few years, a refinance may be the right solution for you to lower your monthly payment, or pay more and get ahead.
Look into mortgages and rates online, and then contact a licensed mortgage professional. All lenders should advise you up front about fees, the loans you qualify for, and the monthly payment. You will really want to calculate if a refinance is saving you money over the life of the loan, making the fees worthwhile. A professional can work with you to do these calculations.
Lowering the monthly payment is a goal for many people who refinance. If you are experiencing financial difficulty, this is a major factor for you. Lowering the monthly payment is the difference in being able to pay the mortgage for some people. If you are staying in the house a while, this will ease the pressure for you. You will pay less interest over the term of the loan.
You may also want to change the term of the loan from 30 years to 15 years. This will allow you to recover your equity faster, and pay much less interest. It means that your monthly payment is higher, but you will save a great deal of money over the long term.
Contact your mortgage professional to see if a low mortgage rate refinance is the right move for you.
If you are looking for a low mortgage rate refinance, you might be interested in these articles by Jane Doyle.
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