Refinance to keep your interest rate
Are you concerned about the interest rate rising on your adjustable rate mortgage at the end of the fixed-rate period—and the potential rise in your mortgage payment? Then consider refinancing into a 30-year fixed rate loan to stabilize your mortgage payment over a longer period. Alternatively, refinance into a new adjustable rate mortgage with a fixed rate for the first 5, 7, or 10 years of the loan.
Get peace of mind from a stabilized mortgage payment.
Refinancing your mortgage now into a loan with an introductory or permanently fixed-rate term not only lets you lock in potentially thousands of dollars of savings over the life of your loan; it also keeps your monthly budget stable and manageable. Although many variables may influence which loan type you ultimately choose to lock in the savings, of primary concern is how long you plan to stay in the home.
Stabilizing your payment when you’ll stay for the next 10+ years.
Do you plan to stay in your home for an extended period? If so, then refinancing to a fixed-rate mortgage is a great way to keep your payment from rising. Visit our Mortgage Options section to read more about 30-year fixed rate mortgages and 15-year fixed rate mortgages.
Stabilizing your payment when’ll you stay for the next 5-10 years.
Do you plan to stay in your home for the next 5-10 years? If so, consider locking in an even lower interest rate for a shorter term, perhaps by refinancing to a 5/1, 7/1, or 10/1 ARM. Choosing an ARM loan is a valid decision when it both maps to your life plans and gives you the advantage of rates lower than those you’d find with a standard 30-year fixed rate mortgage.
Your interest rate won’t change during the fixed-rate period of your chosen ARM loan (5, 7, or 10 years), which means the payment will be just as stable as the payment on its 30-year, fixed-rate cousin. Because interest rates on these types of “interim fixed” ARM loans are typically lower than the going 30-year fixed rate, chances are your monthly payment will be lower. But keep in mind—if your plans or circumstances change and you keep an ARM loan beyond the initial fixed-rate period, your payments can adjust up or down, depending on market conditions.
Bottom line: If you know you’re going stay in your home for less than 10 years, then an ARM loan can give you the dual benefit of a stable monthly payment with higher monthly cash flow.
Refinance to lock in low rates and maximize cash flow today.
Call us 866-612-5050, or email us to arrange a free consultation today. A Guarantee Loan Advisor experienced in helping homeowners deal with rising mortgage interest rates will explain your options and walk you through the entire refinance process. As a mortgage banker, we’re able to draw from many funding sources, and know how to put together packages that give you the stability and protection you crave.