Many homeowners that are refinancing to a 30-year fixed rate mortgage are finding they are getting a mortgage interest rate of around 5% or less. Many homeowners in the past few months have seen record low interest rates when they refinanced their home loan. These low mortgage rates have also brought a lower monthly mortgage payment for some homeowners, which has made paying their home loan much more affordable.
The 30-year fixed rate mortgage is one of the more popular mortgages that homeowners obtained due to the fact that it does come with a low monthly mortgage payment and lower interest rate than most other home loans. While, depending on homeowner’s situation, there may be better options in terms of home loans, many homeowners have been getting this type of mortgage simply for the more affordable monthly payment.
Again, some mortgages may be more affordable for certain homeowners than the 30-year fixed rate mortgage, however, it should be known that a 30-year fixed rate mortgage can be more costly over the long run when interest is factored in. Some homeowners with a 30-year fixed mortgage will pay double the original amount of their home on over the 30 year period.
It will depend on a homeowner’s credit score and the amount of equity they have built in their home, among other things, in order to get a low mortgage interest rate. There are also costs that are associated with refinancing that need to be considered before a homeowner proceeds with this type of home loan. Homeowners need to be in good financial standing in order to benefit from refinancing to a 30-year fixed rate mortgage.