Homeowners looking to refinance their mortgage for a lower interest rate may be able to lock in not only a low, affordable rate on a 30-year fixed rate mortgage but also they might get a lower monthly mortgage payment as well.
Many homeowners are refinancing and have been refinancing over the past few months to take advantage of record low mortgage rates and hopefully lower their mortgage payments as well. Currently, mortgage rates are around 5%, which is by no means the lowest they have been, yet homeowners that still get a rate at this level are benefiting as mortgage rates still remain quite low.
Also, homeowners that are refinancing for a lower mortgage interest rates may be getting money back from the equity in their home and as a result many are paying on their mortgage principal which is going to help them down the road when it comes to paying off their home loan.
However homeowners should be aware that there are costs associated with refinancing and they need to make certain that they are aware of these costs before proceeding with a refinance. While some people may benefit from refinancing to a 30-year fixed rate mortgage, one needs to look at their financial situation and weigh the pros and cons about refinancing before they do so.