+1 vote
currently have adjustable rate, considering locking in at 4.25% 15yr
asked Feb 22, 2018 in Refinancing by ken

2 Answers

+1 vote
Hello, Ken, and thank you for writing.

Most experts are predicting mortgage rate increases in the near future. In fact, rates for 30-year fixed mortgages are the highest they have been in four years. Fixing your rate with a 15-year loan can save you money two ways.

First, the shorter term means you'll pay less interest because you accelerate the loan repayment, and second, 15-year mortgages are less-risky for lenders and come with rates about .5 percent below those of 30-year loans.

Make sure that you get quotes from several mortgage lenders and choose the best deal. Studies show that this can save you several thousand dollars in fees, or knock about .25 percent of your interest rate. Lender rates and fees vary widely from provider-to-provider, and you won't know a good deal unless you see a few competing deals.

Thank you for writing, and good luck.
answered Feb 22, 2018 by GinaPogol (47,650 points)
0 votes
Adjustment Rate Mortgage rates are generally lower than 30 year fixed rate mortgages.  If rates goes up so do ARMs
answered Feb 22, 2018 by GustanCho (106,540 points)
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