There are many mortgage refinancing options that were not available 10 years ago, allowing many more people to qualify for mortgage loans. The greater choices today also require serious consideration as to which is the best loan for your. Homeowners must take into consideration their present and future financial picture. People should avoid getting in over their heads in case they’re hurt or out of work for a time.
Three mortgage refinancing options:
1. 30 year fixed interest rate. Offers the most affordable payments that are relatively low; however, the interest increases the total cost of the mortgage.
2. 15 year fixed interest rate. This option builds equity the quickest, saves on interest paid; however, has bigger monthly payments and higher income requirements to qualify.
3. Adjustable interest rate mortgages. These loans offer initial low interest rates and different terms; also, the shorter the term before the rate can be changed, the lower the interest rate. Good for homeowners that know they’ll move or refinance before a rate adjustment; however, if the interest rates rise, so will your payments.