Homeowners with lenders like Wells Fargo have been able to refinance for a lower mortgage interest rate, as rates have remained quite low over the past months. Homeowners have sought a lower monthly mortgage payment also, and for many who refinanced and got a lower interest rate on their home loan, a lower mortgage payment was available as well.
Commonly, homeowners have refinanced to a 30-year fixed rate mortgage in order to get a lower mortgage rate and payment, but this is not the only option homeowners have when they refinance. Yet, the 30-year mortgage is one of the more common mortgages that comes with a low monthly payment.
Homeowners that may be able to afford a higher payment might be able to benefit from a mortgage like a 15-year fixed rate, as it can come with a low interest rate as well. Also, the tradeoff for the higher monthly payment on the 15-year home loan is less cost overall on a homeowner’s mortgage payment. Usually, a homeowner pays around double the original amount on a 30-year home loan, but this is dependent upon the homeowner.
Yet, no matter if a homeowner’s goal is to save money or to simply get a lower mortgage payment, homeowners need to be sure they can afford the cost of refinancing. Wells Fargo homeowner’s are able to refinance with their lender, but many advisers tell homeowners to shop around so they can get the best rate possible.