Many people assume the cost of a refinance mortgage is too costly to have a significant impact on their monthly budget. In reality, if a homeowner is careful to watch the current refinance mortgage rates on a 30 year fixed loan, it is possible to save hundreds of dollars a month over the next 360 months, which can add up to a considerable amount of savings.
Of course, the refinance mortgage rates on a 30 year fixed loan will be slightly higher than those offered for a 15 or a 20 year fixed loan. They will also be higher than quoted for an ARM (adjustable rate mortgage), but there is also lower monthly payment to consider along with predictable mortgage payments that will not vary unless you choose to refi at some later point in time.
Changes in Financial Situations
While many people try to do the opposite and refinance from a 30 year fixed to a 15 year fixed, it is also possible to move in the other direction. Sometimes, changes in health, job security or even a divorce or loss of a spouse can dramatically change the ability to make higher monthly mortgage payments of these shorter loans.
To keep monthly costs low and to spread out the payment over a longer time period, watch for a drop in refinance mortgage rates on a 30 year fixed loan that will result in a lower required payment. Using online mortgage calculators, homeowners can try out different rates and loan options to find out which is the best option for their unique situation.
Mortgages will allow for extra payments on the principal, which may be a good way to speed up the payment of the loan without creating financial pressure or the possible issues of not being able to make a mortgage payment.
If you are interested in discussing your options given the current refinance mortgage rates on a 30 year fixed loan, get in touch with the professionals at Guaranteed Rate. Calculators and applications are all conveniently located at Guaranteed Rate.