Mortgage rates hit Historic Lows today and Gives Rise to Buying or Refinancing! Chosing a 30 year or a 15 year loan.

Converting your mortgage from a 30 year fixed to a 15 year fixed. Many people have mortgages with 20 years remaining at let’s say a 4.625 interest rate and may not realize that they can convert into a 15 year fixed mortgage in the 3.5% range and significantly save money over the long run. Many times the payment may not increase with this reduction in term or in some cases may even decrease. This means you can accelerate your payoff and increase your equity that much faster. It is important to talk to a mortgage professional to compare apples to apples. For example, you may not be best off refinancing with 12 years remaining into a 15 year fixed for a lower payment and a lower rate because over the long run it will cost you more. In addition, lenders can offer a no cost rate which is a higher rate then the rate of a full cost rate. It is important to evaluate which plan best suits your needs. Interest rate spreads can dictate one “deal” being better than the other on any given day. I always advise my clients to consider both options. Most importantly, refinancing is a great time to evaluate what your financial profile is and what your financial goals are and do what is best for your own situation not what someone else deems is best for you. My advice, schedule a consultation with an experienced mortgage professional if your rate is over 4% to make sure you are not missing out the many programs that may benefit you. I'm happy to put you in touch with a mortgage loan professional if you have any questions about how this might work? Mark Slade Keller Williams 917.797.5059