Why Mortgage Refinancing Is Important If Your Fixed Rate Is Above 4%
Homeowners are able to enjoy a lot of benefits that owning your own property provides. But it comes with a number of responsibilities as well, and the biggest responsibility is certainly making sure that you pay your mortgage on time each month. Many people struggle to do so, however, and it's very common for homeowners to take steps to make their mortgage easier to pay. One option is mortgage refinancing, and it's well worth looking into – especially if your current interest rate is above 4%. The fact is that American consumers have gotten used to low rates in the 3-4% zone, but this pricing won't be available forever. That's exactly why the time for refinancing a home mortgage maybe now.
Compare Rates on Mortgage Refinancing
If you're not convinced that fixed rate home refinancing is really worth the effort and time involved, take a look at some of the following points.
Current rates are at all-time lows. There's really never been a better time to think about refinancing, and if you fail to take advantage of the current refinancing mortgage rates there's a good chance you'll miss them for good. 4% is an incredibly low rate, and taking advantage of it is important.
- The biggest, most obvious reason is simple – mortgage interest rates are still incredibly low. If your rate is above 4% there's a strong possibility that you can refinance today and get a much lower rate than you're currently paying.
- That lower rate translates to lower monthly payments in most cases. You could save a considerable amount of money each month – sometimes hundreds of dollars. That's money in your pocket, and these days every penny counts. Lower monthly payments means it's easier to meet your bills and have extra money left over to enjoy life.
- You'll also end up paying less for your home over time. The higher your interest rate, the higher the finished price that you pay for it at the end of the loan terms. A $200,000 home could end up costing twice that depending on interest rates. But by lowering your interest rate through mortgage refinance loans you'll be able to pay less for your home in the long term.
- Those with an adjustable rate mortgage often find that their payments go up or down depending on a wide range of factors. And more often than not, their initial interest rate was far lower than the one they're paying now. By refinancing, there's a good chance that you'll be able to lock in a low interest rate and enjoy the stability that it provides.