Is Mortgage Refinancing With a Fixed Interest Rate Loan Right For You?
If you have little tolerance for risk when it comes to your finances, choosing a fixed interest rate will give you a payment amount you can plan your budget around. Does this mean you'll qualify for lowest interest rate possible? Also, what other factors do you need to consider before choosing a mortgage loan?
It's true that fixed interest rates have the least amount of risk. What does that mean? Risk when it comes to mortgage loans means that you could experience payment shock when the interest rate changes and you can no longer afford the payments. With a fixed rate mortgage this simply doesn't happen. Your mortgage rate and payment amount do not change for the duration of the loan. This security comes at price; fixed rate mortgages come with higher interest rates than their adjustable rate mortgage counterparts.
If you've made up your mind that a fixed rate mortgage is right for you, the next factor you need to consider is the term length. Term length is the amount of time you have to repay the mortgage and the most common and expensive term length is 30 years. Should you refinance with a 30 year mortgage? For the overwhelming majority of homeowners, the answer is no. When you choose a 30 year term your already higher mortgage rate (remember you're already paying more with a fixed interest rate) goes up because longer term lengths have more risk for the lender. In addition to this higher rate you will pay nearly double the finance charges to the lender than if you had chosen a 15 year mortgage.
Most homeowners should choose a 15 year term when refinancing. Your payment amount will be slightly higher than it would be with a 30 year mortgage; however, you will pay significantly less to the lender in finance charges. You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free mortgage tutorial.
Related Tags: refi home loan, home mortgage refinance loan, california mortgage refinancing
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Fixed Rate Mortgage Refinancing
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is - Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit - Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh - Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What - Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there - A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha - How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a - Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q - Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish - Tips For Buying A Home With No Money
There is a popular belief that you can only buy a home if you have great credit. This is false becau
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som
