30 year fixed mortgage rates are currently at all time record lows near the 5% mark. Refinancing to a fixed rate mortgage will provide homeowners more peace of mind by knowing exactly what their monthly payments will be each month. If you currently have an adjustable rate mortgage it would be wise to consider switching over to a low fixed rate mortgage. Making this switch used to result in a slightly higher monthly payment but with interest rates where they are now homeowners are actually able to reduce their monthly payment and get a low fixed rate at the same time.
30 yr fixed mortgage rates are the most common type of plan for residential mortgages. They allow the borrower to pay off the home over a 30 yr term and will own the home free and clear after that time period. 30 years is a long time and interest rates are surely to fluctuate greatly over that time period. If you have an adjustable rate mortgage then your payment is tied to an economic index that will de termine your interest rate that you are charged each month. These adjustable rate mortgages are usually issued with low "teaser rates" to make a home initially appear affordable to homebuyers. This is exactly how we got into this foreclosure crises.
Luckily for you the Obama administration is providing several financial incentives for homeowners to refinance into a low fixed rate mortgage. These incentives are meant to bring back long term stability to the real estate market and halter the rapid pace of foreclosures we have witness throughout the past year. The government recently passed Obama's mortgage assistance program which is a multi-billion dollar program that provides financial grants to homeowners experiencing economic hardship. With such a large budget it would be wise to at least apply for this program. Depending on your situation, the government will pay nearly all of your cost to refinance to a low fixed rate mortgage and you can end up getting a significa ntly lower mortgage payment free of charge.
With 30 year fixed mortgage rates at all time record lows, along with the financial incentives from the Obama administration, now is the best time in history to refinance to a low fixed mortgage rate. There are plenty of ways you can apply for a mortgage refinance but the most convenient way is to go through a multiple lender website online. After filling out an online application, the website will provide you 3-4 lenders who were able to provide the most competitive rates. After talking to a few mortgage professionals it is then up to you to decide what lender was able to provide the best deal. Make sure you mention Obama's mortgage relief program. The best lenders will know how to increase your chances on qualifying and can save you thousands of dollars on your mortgage.
To receive multiple quotes from top lenders check out this link:
Easy Mortgage Refinance Application.
Matthew Couch is a graduate student of The Ohio State University Fisher College of Business where he majored in finance and real estate. His areas of specialization include e-commerce, financial markets, and the real estate industry. His goal of the majority of these articles is to educate consumers on the benefits of refinancing a mortgage at current all time low interest rates. Being a licensed real estate agent as well as a free-lance writer, Matthew has provided consultative services to many home owners considering a refinance. Hopefully, my years of experience in the real estate industry will help home owners make prudent financial decisions.
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