Refinancing: Fixed Rate Loan Products Offer Stability

Perhaps you are struggling with an interest rate adjustment for your ARM loan or want to prevent an interest rate increase in the future, refinancing with a fixed-rate loan product is your ticket to predictability in your mortgage payments.

Choosing a fixed-rate loan product for your mortgage refinance provides you with straightforward terms and payments. You can easily plan your budget into the future, knowing that the loan interest rate and your monthly mortgage payment will remain the same for the entire term of the loan.

Depending on your financial needs and goals, you can choose from 30-year, 20-year and 15-year fixed-rate refinancing. The term you choose directly impacts the interest you will pay and determines what your monthly payment will be.

The longer the term of the refinanced mortgage, the higher the interest rate and the more interest you can expect to pay during the life of the loan. On the positive side, a longer term also means the monthly payment for your refinanced mortgage will be more affordable.

If you choose a shorter term for your fixed-rate refinancing, the sooner you will be able to pay off the mortgage and build valuable equity in your home, but you can expect a higher monthly payment.

Fixed rate loan products for your refinancing may be ideal if you:

• •Are concerned the interest rate for your current loan will increase.
• •Desire the predictability of a fixed interest rate.
• •Want to be able to determine what your payment will be for years to come in order to plan out your budget.