Now may be the right time to refinance and potentially save hundreds of dollars each month
- Eliminate monthly PMI
- Accelerate your equity and pay off your loan faster
- Increase your cash flow with a cash-out refinance program
- Pay off debt, make home improvements or fund large purchases
- Potentially lower your interest rate
This is your standard 30 year, fixed interest rate mortgage loan. With the record low interest rate environment, many borrowers are looking toward these types of programs in hopes of locking in a consistent, low payment mortgage for the long term. There are some things to consider however before committing to the fixed rate loan. For example, most borrowers refinance every 3-5 years or so for one reason or another.
- Interest rates may be lower than they were when they got their loan.
- Perhaps you may have kids going to college.
- Desire for home improvements.
- Need money for real estate, starting a business, or other investment.
- Decide to sell your home at some point to down size or even upgrade.
Let’s face it, a lot can happen in 30 years and all of these are real world examples that would cause someone to refinance before the home is paid off 30 years down the road. If you think you might need to plan ahead for one of these scenarios, then perhaps there are cheaper options for your home loan needs.
The 3/1 or 5/1 hybrid Adjustable Rate Mortgages (ARM) for example offer you a fixed interest rate for a period of either 3 years or 5 years respectively. Because the interest rate is only fixed for a proportion of the loan term, you may get to enjoy a lower interest rate and monthly payment than you could with a 30 year fixed.
However, for many folks the peace of mind offered by a 30 year fixed outweighs the benefits of a slightly lower interest rate, even if they end up refinancing or selling the home before paying the loan off 30 years later.
- The 30 year fixed is a very safe and secure loan, with the lowest and most predictable payment available for most people.
Get a free and accurate loan comparison and see which program makes the most sense for you, and your family today!
FINANCIAL DISCLOSURES: MakeWay Mortgage Inc. is a mortgage broker who is not an agency of the federal government, nor affiliated with your current lender. This is not a commitment to make a loan. All approvals are subject to underwriting guidelines and eligibility. Underwriting guidelines include but are not limited to: debt to income ratio, loan to value ratio, acceptable credit and or income history, property type, current homeowner’s insurance, equity position, property type, number of units, financial reserves, bank statements, financial statements or tax returns, insurance, occupancy type, number of financed properties, Debt Service Coverage Ratio, rent history, taxes, etc. Call to secure your pricing today!