Current 15 Year Mortgage Rates
If you have been paying attention to the news, you likely know that the fixed 15 year mortgage loan has made a comeback because of the historic low interest rates driven by the Federal Reserve and flat U.S. economy. The bond market continues to react favorably as banks have extended some of the lowest rates available to qualified applicants seeking a fifteen-year mortgage. This is really good news for homeowners looking to own their property outright in 15-years. This also helps stimulate homeownership with first time home buyers gaining access more affordable housing.
According to Freddie Mac, the average on 15-year mortgage rates fell to 2.84% with 0.5 points this month. Freddie issues a daily and monthly report that indicates the average commitment on interest rates and points from a large pool of trusted lenders in the United States. Homeowners now have the ability to cut the number of years they will have to pay a mortgage in half by refinancing into a 15-year mortgage clearing away from their past 30-year loan. Affordability is personal for each individual because not everyone has the means to move into a 15-year mortgage. Yes the 15-year mortgage rates are lower than 30-year loans when comparing top lending sources for the purposes of refinancing. Take a few seconds and complete the form below to get today's 15-year rates and discuss your goals with a lending expert for free.
Why Homeowners Should Refinance from a 30 to a 15 Year Mortgage Today with a Fixed Rate
Mortgage interest rates still hover near record lows. That is why many homeowners are considering not just refinancing, but refinancing from a 30 year loan to a 15 year loan. Refinancing into a 15 year mortgage loan is attractive for many consumers because you will pay the loan down faster and save tens and even hundreds of thousands of dollars in interest over the loan's life.
Mortgage experts tell us that people who have steady, reliable cash flow from their job and have extra income are well suited to refinance from a 30 year mortgage into a 15 year mortgage.
Some people who have a higher interest rate and then refinance into a 15 year mortgage at a lower rate could end up with little increase in payment. For most people, however, a shorter loan period will increase the monthly payment. Still, the long term benefits of a 15 year mortgage cannot be ignored.
Consider These Benefits of Refinancing into a 15 Year Mortgage:
More Considerations for Refinancing into a Shorter Term
There are many benefits to refinancing into a 15 year mortgage, but there are considerations as well. One of the key things to think about is the affordability of the new, 15 year loan. Borrowers need to consider all of the costs that are associated with the refinance and also that the loan will reset to a new term. So, if you are on year 19 of a 30 year mortgage, it may not be worth the closing costs to refinance.
Another factor to consider is that the higher payment on the 15 year mortgage could limit you to purchase a smaller and more modest house than with a longer loan.
How long you intend to stay in your house also should be taken into consideration. If you are going to stay in your house for only another year or two, the costs of refinancing could be too high for it to be worth it.
If you want to enjoy the benefits of refinancing into a 15 year mortgage without the commitment, you also can consider the following:
Lastly, of course, remember that the payment on your loan will be approximately 50% higher each month, so you will need to adjust your budget accordingly.
Overall, this is a great time to refinance into a 15 year mortgage. You just need to run the numbers on the payment each month to determine if the long term interest savings are worth the higher payment in the short term. Article written by James Swift