Interest rates are low so it may be time to refinance your mortgage to lower your mortgage payments. Depending on your loan, lowering the interest on your mortgage even by half-a-percent can save hundreds during the course of a year and thousands or tens-of-thousands over the life of your mortgage.
However, it is important to research your mortgage options before refinancing. A shorter term for your mortgage can give you higher payments but lower interest and you pay off your mortgage sooner, which allows you to avoid paying more interest in the long run. However, if the monthly payment is your concern then the longer-term mortgage will offer you lower monthly payments but you will pay more interest in the end.
If interest is your trouble and you can work it into your monthly budget then pay more than your monthly payment to pay down the interest rate and pay off the mortgage sooner. If you have an adjustable-rate mortgage, or ARM, the interest rate on your mortgage will change over time, but seeing as how the interest rate is so low at the present a fixed rate mortgage may be the way to go. Most people have an adjustable-rate mortgage because they feel interest rates may fall in the future but the interest rates on a mortgage are now at their lowest they have ever been and it doesn’t look like they will ever fall much lower.
There are some mortgages loans that will penalize the homeowner for paying off their mortgage early and if you have had your mortgage for a long time then refinancing could do more harm then good. The longer you pay on a mortgage the more the bulk of the payment goes to the principal rather then interest so refinancing would start the homeowner over again in the process.
Checking with banks or advertisements from lenders on offers of refinancing are anyone’s best bet. Websites like subprimeblogger.com offer information as well. Talking over refinancing options, and fixed-rate versus adjustable-rate mortgages, with financial advisors or your personal lender is truly the best way to discover if refinancing is right for you and with interest rates so low it doesn’t hurt just to look at your options.
Refinancing a home loan is a great way to save money but there are other ways as well. Trading down and reducing a car payment is another way for homeowners to keep more money in their bank account. Many in the south may seek Craigslist Miami Used Cars for Sale in hopes of finding a lower monthly payment or no monthly payment at all.