The changes to FHA mortgages and the low interest rates you can get with a 15 year fixed rate loan are making the smart people stop and think. Sometimes the differnce in monthly payments are minimal, but the oversll cost of the loan is over $100,000 less. Seems like a no brainer to me.
15 year Loans are popular again - According to the Wall street Journal, the percent of home loans that are 15 year fixed rate mortgages is on the rise.
Between January and June, 26% of homeowners who refinanced chose a 15-year fixed-rate mortgage, according to data from CoreLogic, a provider of financial, property and consumer information. During all of 2009, 18.5% of borrowers who refinanced opted for a 15-year term.
WHy the change? Historically low interest rates for fixed-rate mortgages.
The average rate on a 15-year fixed-rate mortgage was 3.86% for the week ending Aug. 26, according to Freddie Mac's weekly survey of conforming mortgage rates.
I've talked to some customers who have decided to refinance their homes instead of moving up. The low rates in 15 year mortgages in some cases allowed them to reduce the term of their loans by more than 10 years and have payments close to what they started with. The end result is a savings of over $100,000 on their house payments.
If you are interested in refinancing your home or buying a Nashville Home, contact me via e-mail, or call. I have a short list of the best mortgage professionals in the area.
The Brewer Group
Benchmark Realty
We are looking at at a 15 loan refi - big selling point for us is it puts the end of the loan around time we plan on retiring. That would definitely make retirement finances a bit easier...
Good info Larry, and that sounds like a good plan Gordon. Getting ready to refi myself.