| Your home represents many different things at the | | | | may be time for you to refinance. |
| same time: a place to be protected from the elements, | | | | The Types Of Rates |
| a place to feel secure, a place to entertain guests, a | | | | When you look for published mortgage rates, you will |
| place to raise your kids, and a place to serve as a | | | | notice various types of rates. The most |
| long-term investment for your family. | | | | commonly-posted rates, however will be:a. 30 Year |
| For most people, buying a home is usually the biggest | | | | Fixed Rateb. 15 Year Fixed Ratec. 5/1 Adjustable |
| purchase they will ever make. When it comes to | | | | Rate |
| mortgages, the most important variable is that of the | | | | Of course, there are many other types of rates |
| interest rate. Just a small change in the interest rate | | | | available, but by keeping your eye on these rates over |
| can mean huge savings over the life of the mortgage. | | | | time, you can get a good sense as to where the |
| For example, on a $250,000 loan with payments | | | | market is going. |
| spread over 30 years, you would save over $100,000 | | | | Fixed rate mortgages are just that: they stay the |
| (that's right, nearly half of the initial borrowed amount) in | | | | same over the life of the mortgage. Meanwhile, |
| total interest payments by shaving just 2% off of the | | | | adjustable rate mortgages (also called ARMs), means |
| interest rate (say, from 7.5% down to 5.5%). | | | | there is a fixed rate for the first few years and then |
| The Wonders Of Refinancing | | | | an adjustable rate after that. |
| Mortgage rates are always changing. Depending upon | | | | Factors That Affect The Rate You Get Offered |
| a few macro-economic factors such as the prime | | | | When looking at the rates from a particular lender, |
| rate and housing sales trends, average mortgage | | | | make sure to keep in mind that the posted rates may |
| rates can easily change by two or more points | | | | not represent the actual rates you get offered. That is |
| (percentage points) within just a few months or years. | | | | because they will take into account your credit score |
| That is why refinancing your mortgage can be such | | | | when preparing your offer. Also, in some instances the |
| as smart idea. Refinancing is simply the act of | | | | lender may add "points" to your loan in exchange for |
| replacing your existing mortgage with a new mortgage, | | | | your getting the posted, lower rate. One point in |
| usually at a better interest rate. Doing so can save you | | | | lender's fees means the equivalent of 1% of your total |
| a ton of money in interest payments over the life of | | | | borrowed amount would go to the lender as a fee. |
| the loan. | | | | Be sure to ask about whether any points are being |
| Why Getting The Current Mortgage Refinance Rates | | | | taken into account when you view your lending offers. |
| Matters | | | | The Importance Of Shopping Your Rates |
| Given that mortgage refinance rates are always in flux | | | | Finally, make sure that you solicit mortgage refinance |
| - even on a day-to-day basis - it is important to keep | | | | proposals from multiple lenders. As with anything else |
| your finger on the pulse of the market. While nobody is | | | | in life or in business, more choices is always better. Be |
| smart enough to time the mortgage rate market | | | | sure to get at least 5 offers from different lenders |
| completely, any lay person can follow the general | | | | before settling up any one offer. |
| trends. If the rate is at least 0.5% lower than what it | | | | Follow these tips when looking for the best interest |
| was when you signed your current mortgage loan, it | | | | rate for your new mortgage refinance loan. |