A common consideration for people with a high interest 30 year term mortgage or a high interest 15 year term mortgage is to closely monitor the current 15 year fixed mortgage rates.
Taking the time to refinance 15 year fixed mortgage rates at the right rate can save an individual or a family considerable amounts of money in saved interest. It is important to know just what you are doing and the possible risks that may be associated with this choice for some homeowners.
The Risks
The risk when looking at the lower costs to refinance 15 year fixed mortgage rates is to not consider the increase in the monthly payment. For those homeowners currently in a 30 year mortgage, the payment is going to be substantially higher than what they are currently billed per month.
However, this risk can be completely eliminated by comparing the two options; the 30 years fixed you are paying, and the payments based on the current refinance 15 year fixed mortgage rates.
Online calculators offered by top mortgage services will allow you to input the specific data on your property, including the costs and fees for the refinance, and determine the total monthly payment. This is a quick and accurate way to determine if the additional payment is within your budget.
The Benefits
The big benefit of refinancing to the 15 years fixed rate mortgage is the savings in interest paid over time. For a more expensive home, this can result in thousands of dollars and even as much as tens of thousands of dollars as you are eliminating 180 months of interest.
The slightly lower interest rates of the 15 years fixed are also an advantage. Combining this with the faster buildup of home equity and the ability to be mortgage free in half the time is a great way to save money if it is feasible.
To discuss your options and to review the refinance 15 year fixed mortgage rates from your current mortgage, talk to the experts at Guaranteed Rate.
