Many borrowers can benefit from even a slight decrease in their mortgage rate. A drop from one-half to three-quarters of a percentage point can help you lower your payment. Due to current market conditions, today’s mortgage rates are at their lowest levels in decades.
Savings in the short run
- By lowering your interest rate, you will see an instant savings in your monthly payment.
- You can also save in your monthly expenses by lengthening the term of your loan. By changing a 15-year mortgage to a 30-year mortgage, you can spread out your payments and decrease the amount due each month.
- Using an interest-only home loan will allow you the flexibility of paying only the interest due in certain months while paying as much towards the principle as you would like along the way.
Savings in the long run
- By changing the length of your mortgage from a 30-year loan to a 15-year loan, your payment will be higher each month but you will be saving thousands of dollars in the long run.
For more information on lowering your payment with a home refinance, contact a Financial Specialist today for a free quote! We can help you review your situation and determine the best option for your future.
