Are you still paying on an Adjustable Rate Mortgage and are considering refinancing to a fixed-rate home loan? Refinance mortgage rates from lenders like Amerisave are still near records lows so refinancing could make sense depending on your situation. Here’s an article on HSH.com with several tips before you refi to help you make an informed decision:
If you have an adjustable-rate mortgage (ARM) you may be wondering if it would be safer to take advantage of a fixed-rate home loan instead. As with any mortgage decision, the answer is “It depends.” Every mortgage, whether it carries a fixed interest rate or an adjustable one, should be suitable to meet the homeowners’ budget and their financial goals.
Remember that the test of how good of a deal you’re getting when mortgage refinancing depends on how much you’re paying at closing rather than how low the interest rate. The reason closing costs are so important is that you’ll want to recoup your out-of-pocket expenses like the mortgage origination fee before benefiting from that lower interest rate. The more you pay, including lender junk fees, the longer it’s going to take to break even.
You can learn more about avoiding unnecessary lender fees while benefiting from today’s lowest refinance mortgage rates by checking out my free Underground Mortgage Videos.