Despite recent rate hikes by the Federal Reserve, Americans
still enjoy some of the lowest interest rates in
generations. Though you may have missed some record breaking
low rates, you can still save your family a significant
amount of money by refinancing your mortgage at a lower
rate.
If you intend to sell your home within the next few years,
you can take advantage of today's low rates by switching to
an adjustable rate mortgage. Although experts expect
mortgage rates to climb in the next few years, you can
reduce the amount of interest you pay between now and your
selling date with a carefully timed adjustable rate loan.
For most homeowners, today's hot refinancing marketplace
holds some tremendous deals on fixed rate loans. Regardless
of how high interest rates may climb over the next few
decades, you can refinance your mortgage now to lock in
today's low rates.
You can drive your mortgage rate even lower by switching
from a thirty year loan to a fifteen-year loan. Though your
monthly payments would be somewhat higher, you can
potentially cut the amount of interest you pay over the
lifetime of the loan in half. In addition, you'll pay off
your house much sooner, allowing you to accelerate your
retirement savings or even scale back the number of hours
you spend at work.
A handful of ultra-competitive lenders now offer refinancing
with no closing costs. These lenders compensate by offering
interest rates slightly above the rest of the market. Other
lenders offer market rates by adding the closing costs to
the amount of the loan. In either case, run the numbers to
find the refinancing deal that can save you the most money.
Keep an eye on your contract for hidden fees and charges. A
low advertised rate may lure you through the door of a new
mortgage lender, but hidden monthly fees may negate your
interest savings. Also watch out for lenders who try to
saddle you with a prepayment penalty. You should never have
to pay a fine to get out of debt.
While the market is white hot, take advantage of the
competition. Call your current mortgage provider with offers
you've seen in this week's newspapers. Challenge them to
meet or beat those deals, and they usually will. Otherwise,
you can pit a number of potential lenders against each other
to fight for the opportunity to serve you.
Earl Baker is a writer for DebtConsolidationer.com and RefinanceFinds.com.
For additional articles and an extensive resource for
everything about Debt-Consolidation and Refinance, please visit us at http://www.DebtConsolidationer.com and
http://www.RefinanceFinds.com
