Categorized | Finance and Mortgage

15-Year Refinances Surge as Mortgage Rates Drop Again

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For the sixth straight week, mortgage loan rates have fallen, giving many borrowers the opportunity to decrease the amount of time it will take for them to pay off their mortgage. Rates for fifteen-year mortgage loans are at their lowest percentage ever, which continues to make refinancing a very attractive option for most borrowers.

Many homeowners are looking to cut down on the amount of time it will take for them to pay off their home, and are thus refinancing with fifteen-year mortgage loans. Those simply looking to reduce their monthly payments have also benefitted immensely from the decreased mortgage rates. Thirty-year fixed mortgage loans are also at record lows.

It is the fifteen-year mortgage loans, though, that have become the ideal option for most homeowners. In fact, some lenders have gone on record as saying that they are performing more fifteen-year mortgages than ever before. While fifteen-year mortgage loans require a slightly higher monthly payment, they are paid off much faster than thirty-year loans. Furthermore, they provide borrowers with the opportunity of paying off their mortgage faster without any kind of penalty for pre-payment.

Some borrowers, however, are not able to take advantage of the lower rates, and are thus becoming quite discouraged and bitter with the current state of the market. Many of these borrowers are restricted by refinancing limits regarding the appraisal of their home, and are stuck with higher interest rates.

It is believed that the low rates will continue throughout the rest of the year, though most experts are not sure as to just how low they will actually drop.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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