Many homeowners who are refinancing for a 30-year fixed rate mortgage are getting mortgage rates of around 5%, or lower for some people, and as a result these lower mortgage rates are bringing a lower home loan payment. Many homeowners who may be struggling in their finances are making strides to afford the option of refinancing on the chance that they can get a lower monthly payment.
Some homeowners that have a good credit score and equity in their home have seen record low interest rates when they refinance. While these low rates are not guaranteed and there is no certainty in getting a lower monthly mortgage payment, many homeowners have used refinancing as a way to get a more affordable mortgage payment.
There have been homeowners that have gotten money back from refinancing and have used this money, which came from the equity they had built their home, to pay down their mortgage principal. This, obviously, will make a home more affordable over the long run as well.
Homeowners need to be aware that there are certain costs that are associated with refinancing and they need to make sure they can afford these costs before trying to obtain a lower mortgage rate through refinancing their home. Also, a 30-year fixed rate mortgage may bring a lower monthly mortgage payment for some, but it can cost more over the entirety of the home loan repayment time frame.
Anyone who is struggling to make their home loan payment should talk to their lender about available options and make sure that refinancing will be in their best interest. There are other assistance programs available, but some require that a homeowner be in a bad financial situation before they can be helped. It’s important to assess your financial health and decide what route will be best for you when it comes to making your home more affordable.