What to do when Mortgage Rates are Down
Are you confused over how to re-finance your present Chicago mortgage? Should you re-think your assessment of low mortgage rates? To a borrower like you, what does low mortgage rates really mean? Here are some tips on to take when interest rates on Chicago mortgages are down.
Changes to Fixed Rate
Should you take advantage when the lowest mortgage rate is at least two percent lower than the present rate of your existing mortgage? Sounds great right? Think again! Why? Back when you established your present mortgage rate you could get a fixed rate for 30-year mortgages.
Today, we have a different picture altogether. More options are available for financing housing and among these are fixed mortgages from 15, 20, to 30 years.
So, what do you do to get the lowest mortgage rates from lenders? According to experts, try refinancing to lower your monthly payments. If that proves difficult, try to change your adjustable rate loan to a fixed rate.
Federal rates affect the changes in an adjustable mortgage rate. When is it viable for you to go for an adjustable mortgage rate or ARM?
Get an ARM if you have no plans of staying for long in the house where you currently reside, to get an adjustable mortgage rate lower than mortgages with fixed rates.
If you already have an ARM, and you intend to stay put in your house for sometime, it is best for you to get your loan at today’s lower but fixed rates.
Home Equity Loans
These loans, change with the prime rate and their interest rates could decrease or increase. The thing is, no matter how often their rates change, they still remain higher than the regular mortgage rates lenders offer.
Now, if interest rates are quite low, then it is best for you to take out your own home equity loan.
You have to decide if you should refinance or not? If you decide to refinance your loan, get in touch with your present lender with this primary question in mind – “Can they waive a few closing costs?”. If the answer is no, get in touch with Chicago local lenders to get more information on mortgage rates.
Always remember – when mortgage rates are low and you’re shopping for a lower rate, you can save money if you refinance!