January 31st, 2019 9:51 AM by Jackie A. Graves, President
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If you're among the millions of homeowners that have an
Adjustable Rate Mortgage (ARM) that's scheduled to adjust soon, now may be a
good time to refinance into the security of a fixed–rate mortgage.
now? Two very good reasons.
Today's mortgage rates remain historically low.
They may not be as low as they were when you got your ARM 3–, 5– 7– or 10 years
ago, but they remain very attractive.
Peace of Mind
Ninety percent of today's homebuyers choose the 30–year
fixed–rate mortgage — and, with good reason. It provides you with:
Affordability — With the longer term, your
payments are stretched out for a longer period, lowering your monthly payment.
Stability — Since your mortgage rate
will remain the same for the entire term of your loan (aside from taxes and
insurance that can increase over time), your mortgage is protected from inflation and you'll enjoy
the financial security of consistent payments for 30 years.
Flexibility — If rates drop or you
need to refinance for other reasons, you can do so without penalty in most
may also want to explore a 10–, 15– or 20–year fixed–rate mortgage. These loans
provide the same benefits as the 30–year term, but your monthly payment will be
higher due to the shorter term. You will, however, build equity faster, pay
less interest over the life of your loan, and secure a lower rate.
if refinancing to a fixed–rate mortgage is right for your situation, lean on
your lender or financial professional for guidance. Also, check out our calculator to see how much your mortgage
payments might be with a fixed–rate mortgage.
Visit My Home by
Freddie Mac® for more
information on types of loans, refinancing, closing costs and more.
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