Exchange an Adjustable Rate for a Fixed Refinance Rate
It's possible that you chose an Adjustable Rate Mortgage (ARM) because your financial future was less secure, or you were unclear on how long you'd live in your home. It’s also a possibility that you've become financially stable and know that you'll be staying in your home for several years. At this point, it may be beneficial to swap that fluctuating adjustable rate for a fixed-rate mortgage. Regardless of the current market conditions, you may find greater security knowing that your monthly payment will remain steady with a fixed-rate mortgage
Fixed-rate mortgages and adjustable rate mortgages (ARMs)
Fixed-rate mortgages have a constant interest rate for the life of the loan.
Predictable monthly payments throughout the life of the loan.
You'll be protected from escalating Interest Rates.
Good refinance option when Interest Rates are lower.
Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions.
The initial rate is fixed for an introductory period (usually one to ten years).
The Initial Rate is typically lower than a fixed-rate mortgage. Then the rate adjusts annually based on a market index, including a predetermined adjustment cap.
Good refinance option when Interest Rates are NOT especially low.
You can find out the best way to take advantage of the changing market by letting a Hanna Team Professional educate you on all your refinancing options.