30-year fixed rate mortgages have been low as mortgage rates have stayed around 5%. While some people have gotten rates lower than 5% or some slightly higher, many homeowners are refinancing so that they may take advantage of a lower rate and possibly a lower monthly mortgage payment.
Homeowners have been struggling with their mortgage payments as of late due to the troubling economy. Also, underwater mortgages and unemployment have caused mortgage trouble for homeowners. While there are options for homeowners in these cases, many homeowners that are just looking to get a lower interest rate for the lower payment that it may bring are simply refinancing their home loan.
Refinancing can be beneficial for some people, however, it’s not going to be affordable or in the best interest for everyone. In the past, some homeowners have refinanced in order to get money back from their home’s equity and have used this money for a variety of purchases or repairs on their home.
However, some people are refinancing for this lower mortgage rate, getting a lower monthly mortgage payment, and using that money to pay on their mortgage principal. This is too can help a homeowner when it comes to their overall mortgage payment, but many homeowners are simply looking at the benefits of a lower mortgage payment when refinancing.
Anyone considering refinancing to a 30-year fixed rate mortgage may want to talk with their lender and be sure that it is in their best financial interest before doing so. Again, refinancing can be beneficial but it’s not going to be for everyone.