This BLOG On Refinancing 30 Year Fixed Rate Loan To 15 Year Fixed Mortgage Rate Was UPDATED On January 7th, 2019
There are various fixed mortgage rate programs available.
- 30 year fixed mortgage rate programs are the most popular mortgage loan program
- There are also 25 year fixed rate mortgage rate programs, 20 year fixed mortgage rate programs and the 15-year fixed-rate program
- The biggest advantage of Refinancing 30 Year Fixed Rate Loan To 15 Year Fixed Rate is the amount of interest savings
- Homeowners also have reduced mortgage interest rates on 15-year fixed versus 30 year
- Homeowners can save and the large difference in mortgage rates that will benefit on the 15-year fixed mortgage program than from the 30-year fixed mortgage rate program
- 30 year fixed rates are normally much higher than 15-year rates
In this article, we will cover and discuss Refinancing 30 Year To 15 Year Fixed Mortgage Rate.
Refinance To 15 Year FRM And Save Thousands
Mortgage rates have skyrocketed in recent months due to the good news in the economy and the increase in the stock market.
- 15-year rates are normally lower than 30-year rates
- These homeowners should definitely consider the idea of refinancing their 30 year fixed mortgage rate loans to a 15 year fixed rate loan
- For those homeowners who have closed on their 30-year fixed mortgage rate FHA loans should also consider refinancing to a 15 year fixed rate loan
- We now have conventional loans up to 95% LTV with no mortgage insurance premium also called Lender Paid Mortgage Insurance
Refinancing an FHA into a conventional loan with no mortgage insurance will save the homeowner big time by eliminating the pricey monthly mortgage insurance premium.
Disadvantages Of 15 Year Amortized Loans
The biggest disadvantage with having a 15 year fixed rate loan versus a 30 year fixed mortgage rate loan is that the payments will be higher.
- Another disadvantage is that the debt to income ratio needs to be lower in order to qualify for a 15 year fixed rate loan
- In the event, if you run into financial problems or difficulties, the bare minimum payment of mortgage payment on a 15-year loan will definitely be higher than a 30 year fixed mortgage rate loan
- Borrowers who are unsure of their future earnings potential should take the 30-year FRM and pay extra towards principal
- By doing the above, if things do not go well financially, homeowners do not have to be burdened paying the 15-year amortization versus the 30
However, if you can somehow sacrifice paying a little more every month towards your mortgage payments and sacrifice on your other spending, having a 15 year fixed rate loan can possibly save you tens of thousands of dollars over the life of the mortgage loan.