Citigroup homeowners have been turning to refinancing in order to get a lower mortgage payment on their home. Typically, homeowners are refinancing to a 30 year fixed-rate mortgage as mortgage rates are around 5% on this type of mortgage and for many homeowners this is a much lower rate than what they currently have.
Refinancing can not only bring a lower mortgage rate but a lower mortgage payment as well. Obviously, this is very beneficial for homeowners who may be struggling to pay their monthly mortgage payment and are in need of some sort of assistance. Rather than go through the home loan modification program, homeowners have been choosing to refinance to reap similar benefits of a home or modification.
Homeowners need to keep in mind that, regarding a 30 year fixed-rate mortgage, while it may bring a lower interest rate and monthly payment the cost over the life of the mortgage may be more expensive or costly to the homeowner. Due to the length of a 30 year fixed-rate mortgage homeowners often end up paying more overall, even when they get a low interest rate.
Anyone considering refinancing, no matter if they are banking with Citigroup or another lender, should look at their financial situation to make sure they are in the position to refinance and can’t afford the costs that are associated with refinancing their home loan.