While mortgage rates have reached historic lows in the past few years, it has begun to climb up once again. But this doesn’t mean homeowners have let the rising rates take away their opportunities to cut back on housing loan costs.
You can still find a great deal when you wish to refinance your mortgage in Phoenix, Arizona, says financing experts from Primary Residential Mortgage, Inc. Because refinancing provides you with several ways to lessen the burden of a home loan, you should consider doing it as long as you’re sure that it’s the best financial decision.
Swapping your fixed-rate mortgage with an adjustable-rate one
Sometimes, homeowners who initially intended to stay in the same home for many years have to move to a new place. Or, they have run into a considerable amount of cash that they can use to pay off their loans in a shorter period. In such situations, refinancing can make great sense. Through this process, homeowners can have their fixed-rate mortgage changed to an adjustable-rate program.
Refinancing to replace your current loan with an ARM: The good it will bring
Switching to an ARM can help you save money in the event that interest rates go down and have a strong possibility of stabilizing at a point lower than what you are currently paying for your FRM. While you would have to make higher monthly payments once you have an ARM, this will allow you to make more payments towards the capital (loan amount) and less towards the interest.
You should consider having your existing loan refinanced if it will significantly reduce your housing loan expenditures. You want to become a full-fledged homeowner faster and say goodbye to one of the heaviest financial responsibilities you have. Refinancing can help you achieve this goal.