Refinance Into a Fixed-Rate Mortgage
If you currently have an adjustable-rate mortgage (ARM), you probably pay close attention to interest rates—and maybe fret when the rates go up, which could lead to higher payments for you in the future.
One way to avoid the possibility of higher payments is to refinance your adjustable-rate mortgage into a fixed-rate mortgage. Now may be a good time to get a fixed-rate loan because you may be able to save money by refinancing and fixed-rate mortgages can give you peace of mind.
With the rates on fixed, 30-year mortgages at or below historic lows, refinancing your adjustable-rate mortgage into a fixed-rate mortgage may save you money. Many borrowers who have ARM’s took out these loans when interest rates were higher than they are today. Even with the lower initial rate that ARM’s offer, the rates that many borrowers thought were a good deal a few years ago are now high in comparison to the rates today. As always, you’ll need to do the math to see if you’ll be able to save money with a fixed-rate mortgage.
Also, a fixed-rate mortgage can offer you peace of mind. By getting a fixed-rate loan, you’ll be able to eliminate any concern about rising interest rates and you’ll have a set payment each month; you won’t need to worry about your mortgage payment going up if the rates go up. Also, by having a set payment each month with a fixed-rate mortgage, you’ll be able to budget your finances much easier on a month-to-month or year-to-year basis.
Is a fixed-rate mortgage right for everyone? Not necessarily, but it does make sense for many borrowers, so talk your mortgage professional. As with any type of loan, your ability to refinance will depend on how much equity you have in your home and your current credit situation.
In the end, if you can refinance your current mortgage, you may be able to avoid mortgage “sticker shock” down the road.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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