Refinancing Your Fixed Rate Mortgage - Tips
If you bought a house in Arizona a few years back with the help of a fixed rate mortgage loan you must be paying a high interest rate on the loan since the rates at that time were quite high.
This was because the value of the dollar was high thanks to the economic boom going on at that time.
But now the value of the dollar has dropped quite a bit, making homes cheaper and the AZ mortgage rates a lot lower.
This is why you should consider refinancing your home in order to get lower interest rates and reduce your monthly payments.
When you finally choose to make use of the low AZ mortgage rates and refinance your home you should keep the following things in mind: How Long You Plan to Keep the House: When you refinance your house to reduce your monthly payments it does not mean you will definitely save money.
If you plan to shift and get another home in the next few years, refinancing your 15 or 30 year fixed interest mortgage is not a good idea since you will paying only the interest for the first few years.
If you plan to sell the house in four years, you will be paying less on the monthly payments for four years, but in the long run, actually be paying more than what you were in the first place.
Fees Charged for Refinancing: When refinancing you will have to redo the paperwork and will have to pay fees to the lender, broker and appraiser once again.
You will have to include these loan origination fees to the principal.
Apart from these points, refinancing your house to reduce the monthly payments is a great idea.
If you plan to keep the house for a long time than you can definitely cover the loan origination fees and get savings of more than a thousand dollars over the term of your mortgage loan.
The AZ Mortgage Rates are low right now and anybody who knows a little but about refinancing will tell you that now is the time to do it.
Refinance on a fixed interest mortgage loan when the rates are low.
This is what any expert will tell you.
But remember to take the above two points into consideration before doing so.
This was because the value of the dollar was high thanks to the economic boom going on at that time.
But now the value of the dollar has dropped quite a bit, making homes cheaper and the AZ mortgage rates a lot lower.
This is why you should consider refinancing your home in order to get lower interest rates and reduce your monthly payments.
When you finally choose to make use of the low AZ mortgage rates and refinance your home you should keep the following things in mind: How Long You Plan to Keep the House: When you refinance your house to reduce your monthly payments it does not mean you will definitely save money.
If you plan to shift and get another home in the next few years, refinancing your 15 or 30 year fixed interest mortgage is not a good idea since you will paying only the interest for the first few years.
If you plan to sell the house in four years, you will be paying less on the monthly payments for four years, but in the long run, actually be paying more than what you were in the first place.
Fees Charged for Refinancing: When refinancing you will have to redo the paperwork and will have to pay fees to the lender, broker and appraiser once again.
You will have to include these loan origination fees to the principal.
Apart from these points, refinancing your house to reduce the monthly payments is a great idea.
If you plan to keep the house for a long time than you can definitely cover the loan origination fees and get savings of more than a thousand dollars over the term of your mortgage loan.
The AZ Mortgage Rates are low right now and anybody who knows a little but about refinancing will tell you that now is the time to do it.
Refinance on a fixed interest mortgage loan when the rates are low.
This is what any expert will tell you.
But remember to take the above two points into consideration before doing so.
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