It is easier than ever to refinance your home mortgage. There are thousands of people that had adjustable rates and have been able to refinance for lower fixed rates, which in the end will save them thousands of dollars.

Adjustable or Fixed Rate?

If you like many others in America signed an agreement with an adjustable mortgage rate, you may be uncertain of your future. Odds are that your mortgage payments have sky rocketed because of the adjustable rates that allow your payments become out of control where you can’t even make the your payments. These adjustable rates along with the now struggling economy have left many families and homeowner filing bankruptcy and even facing foreclosure. However, this is a great time to get back on track and refinance your mortgage with a fixed rate and payments that you can actually afford.

Since the adjustable rates always start off lower than the traditional fixed rates, and if you don’t plan on living in the home for more than ten years, you will want to refinance your home from a fixed rate to an adjustable rate. The term for a fixed mortgage is for over 30 years and you can save money if you don’t plan on living in it for to long.

Better Terms Save Money

If you refinance your mortgage for just ¾ of a percentage point can help lower the interest rate and save money that can be put toward other necessities in your life. You can also negotiate other terms of you mortgage.

An example is say you signed a mortgage for fifteen years, it is possible to spread them out over a longer term. Interest only loans are also available. What this means is that all you would need to pay is the interest rate on the loan for a period of time. This option also allows you to pay on the principle when ever you can. This is a great option for people that need to spend their money on other things like education or retirement plans.

Equity it Cash Out

By refinancing you are opening a home line of credit that can be cashed out. Many times the borrowers which decide to refinance for this reason use the money they have in their home equity to help pay off other debts that also may have high interest rates i.e. credit cards. Doing this can save people thousands of dollars.

Deciding to refinance a home mortgage or not depends on many factors like the amount of time you plan on staying in the home, the mortgage type and also the financial goals you have for yourself and your family. You can also save more by using an online lender, they usually offer lower interest rate and they make it easier to repay the loan, more so then any neighborhood lender.

-M Petrone

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