Many homeowners coming under hard financial times are finding their personal finances strained with their mortgage payment and mortgage rate. Also, many homeowners who had taken an adjustable-rate mortgage, or ARM, have found that with the recession and loss of jobs and wages that the adjustable-rate mortgage, which they thought they could afford is bringing them closer to foreclosure. So, is a 30-year fixed rate mortgage the solution to those who are being strained due to a high mortgage payment as a result of a high mortgage rate?
Mortgage rates, as of late, have been very low and some homeowners, if they have an excellent credit score and are in good standing with their home, among other things, are getting mortgage rates well below 5%.
If your credit is in good standing and you qualify, you may be able to take advantage of a great mortgage rate if you refinance. A 30-year fixed rate mortgage is typically going to bring a lower rate and payment, which is going to help alleviate the financial strain you may be experiencing from your mortgage payment.
Usually, though, a 30-year fixed rate mortgage is going to be a good option for someone looking to stay in that home for the duration of the loan. An ARM is a good idea, in most cases, if you are possibly going to move in the future, and want a low rate in the short term.
However, if you have an ARM and have seen your interest and payments rise, you may want to look into a 30-year fixed mortgage if you can qualify for a lower rate. Doing so may bring lower, affordable payments and help you avoid foreclosure.
