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Refinance Tips
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- Determine how long you plan on staying in your home
A thirty year fixed loan is a good option if you are not planning on moving from your home.
If you are planning to move with a period of time, you may consider a loan that has a fixed rate for a period of time, and then changes into an adjustable rate mortgage after that period. You will get the benefit of a fixed rate loan and will get a break on the rate because your are sharing the risk of rate adjustments in the future.
Example, you are planning to move within three years, refinance a loan with a fixed rate for three years, that adjusts after that period could save you 2.125% or more annually, when compared to a thirty year fixed rate loan.
*Based on a conforming loan amount. Comparing a 30 year fixed rate loan to a 3/1 Libor ARM (as of 04/25/05).
Lenders are looking to earn your business. Get competitive rate quotes and you can get the best rates offered.
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