True or False? A Must read for anyone that has a mortgage interest rate over 4.0% today…
These are questions I hear everyday!
I have 18 years left on my mortgage – I do not want to start over with a new 30 year mortgage!
A valid concern if you start over with the new lower payment. However, if you keep your payment the same as it is now – the interest savings will pay your loan off years sooner than the 18 years you have left. Options to consider might be a new 15 year mortgage that has an even lower rate.
Banks are not lending
If you are going to be in the home for 5 years or more or your plans are uncertain – you cannot beat a conventional 30 year fixed ratemortgage at current rates well below 5%. However, if you are planning to sell once the kids go off to college or some other event coming within the next few years – it could be a huge advantage to choose an adjustable rate mortgage that would have a rate in the low to mid 3% range today.