Some homeowners are happy with their Mortgage Loans Hollidaysburg PA and see no reason to make any changes. Others wonder if choosing to refinance their existing loans would be in their best interests. The only way to know for sure is to talk to a professional and see what options are available. Here are some specific points to keep in mind.
Fixed or Variable Rate of Interest
Back in the day, the homeowner chooses to go with a variable interest rate for the mortgage. The arrangement came with a fixed rate for the first ten years of the loan. Now that the ten year mark is about to arrive, it pays to see what is happening in the marketplace. Are there reasons to think that interest rates are rising and will continue to rise over the next decade? If so, it may be time to refinance the mortgage and lock in fixed rate for the remaining years. Doing so will end up saving the homeowner money in the long run.
Should there be definite indications that mortgage rates will remain low for at least the next five to seven years, it may be in the best interests of clients to hang on to their current Mortgage Loans in Hollidaysburg PA and enjoy the benefits of those variable rates. A financial professional can help the client evaluate the movement of the market and come up with a good idea of what will happen over the next several years. The homeowner can then decide if making a change is wise, or if sticking with the current deal is the better approach.
Shortening the Duration
Since the original mortgage was secured, the homeowner has enjoyed improved financial circumstances. It is now practical to think about refinancing the loan to include a larger monthly instalment payment. Assuming the refinanced loan will include all the features that the client wants, including a competitive rate of interest, doing so will save a lot of money. It will also mean owning the home free and clear a lot sooner.
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