If you’re considering taking advantage of today’s low refinance mortgage rates to lower your payment or lock in from an adjustable rate mortgage with a lender like Amerisave, you might consider shortening the term length of your new home loan. Fifteen year home loans offer dramatic long-term savings over traditional 30-year mortgage loans. Here’s an article by Dan Green of the Mortgage Reports.com with the pros and cons of 15 vs. 30 year mortgage refinancing:
Want to save long-term money on your mortgage? Look to the 15-year fixed rate mortgage. It’s a huge money-saver over today’s 30-year fixed rate mortgage.
Just remember that your decision to refinance should be based on how long it’s going to recoup your out-of-pocket expenses from the lower payment amount. The average homeowner in the United States refinances their home loan every four or five years. If you refinance again before breaking even on your closing costs you’ll be losing money, regardless of how low your interest rate is.
You can learn more about avoiding unnecessary lender fees and markup when mortgage refinancing by checking out my free Underground Mortgage Videos.