The general rule of thumb is that refinancing to a fixed-rate loan makes the most sense when interest rates are low. While no one can predict whether rates will go up or down in the future, many homeowners are currently taking advantage of today’s low rates to refinance from their adjustable-rate mortgage to a new fixed-rate mortgage.
Potential benefit of a fixed-rate loan
The main benefit is stability. While an adjustable-rate loan’s monthly payments can fluctuate, the monthly payment of principal and interest on a fixed-rate loan will stay the same throughout the life of the loan. This can make it easier to set your monthly budget, and can also provide peace of mind. With a fixed-rate loan, even if market interest rates go up, your principal and interest payments won’t.
Lowering your monthly mortgage payment can have a positive impact on your budget.
Potential benefits of lowering your payments
Lowering your monthly mortgage payment by refinancing to a lower rate or extending your loan term can make it easier to pay your mortgage on time every month, while also possibly covering your other debts and expenses. And if you are concerned about your ability to make your current mortgage payments in the future, lowering your payments now can help relieve that pressure.
Before a loan is approved, however, the borrower likely will be asked to order a professional appraisal to assess the value of the property. Get a pre-loan appraisal from Fulton County Home Appraiser using one of our expert and state-certified appraisers. We offer affordable and professional pre-loan home appraisals to establish your home’s present market value.
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