It depends. Usually stable, and lowered, do not go hand in hand. For a lower monthly payment you will usually have to go with an adjustable (ARM) mortgage, which is essentially stable, but only for so long. Ex. a 5 year fixed is fixed over 5 years, then it adjusts according to whatever index the bank uses, and it proceeds to amortize over a 30 year period. If you want a stable loan you go with a fixed. In my opinion 15 year is the best, because it allows you to save a little with the interest rate, but it is stable over 15 years. By the time the 15 years rolls around you should have a number of options to choose from because there should be a fairly large amount of equity in your property.
The idea of refinancing your loan is to lower the payment usually, but continually refinancing the loan is not always the best idea, unless you are an investor putting that money to good use. Hope I helped.
March 1st, 2010 at 7:31 pm
It depends. Usually stable, and lowered, do not go hand in hand. For a lower monthly payment you will usually have to go with an adjustable (ARM) mortgage, which is essentially stable, but only for so long. Ex. a 5 year fixed is fixed over 5 years, then it adjusts according to whatever index the bank uses, and it proceeds to amortize over a 30 year period. If you want a stable loan you go with a fixed. In my opinion 15 year is the best, because it allows you to save a little with the interest rate, but it is stable over 15 years. By the time the 15 years rolls around you should have a number of options to choose from because there should be a fairly large amount of equity in your property.
The idea of refinancing your loan is to lower the payment usually, but continually refinancing the loan is not always the best idea, unless you are an investor putting that money to good use. Hope I helped.
References :
I do loans
March 1st, 2010 at 7:54 pm
If you do a fixed loan the payments are steady. Lower depends on the amount refinanced, time financed ( IE: 30 yrs, 20 yrs etc), and the interest rate vs the original terms.
References :
March 1st, 2010 at 8:37 pm
You should read the fine print and make sure that there are no additional fees and hidden charges. Also, go for fixed rate refinance home loans to keep your monthly payments at bay. Source: http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
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