If you're one of the 75 % of yankee homeowners that are not currently upside down on your mortgage, and therefore are considering refinancing your present mortgage, you should look at a 15 year fixed interest rate mortgage before locking inside a 30 year fixed loan. Here are three reasons the 15 year mortgage has been making a comeback within this economic downturn.

Mortgage Temecula

Record low interest rates

When refinancing from the 7.00% interest rate amortized over 3 decades towards the 3.26% interest rate (September 17, 2011 rate based on HSH.com) over only Fifteen years, the typical spike in the payment per month is absorbed within the drastic rate cut. When you compare today’s 15 year interest rate towards the Thirty year rate just Four years ago, oftentimes a borrower can pay half the speed interest by switching to the present 15 year fixed loan.

More incentive from banks

Even when comparing the current Thirty year fixed to the current 15 year fixed, one can spend less on the interest rate by selecting a the 15 year option. According to the December 28, 2011 Bankrate.com interest rates, they are offering a Thirty year fixed at 3.98% and also the 15 year fixed interest rate loan at 3.28% interest. That's a savings of just about .7% rate of interest. When it comes to the fact that a bank will make far less in total interest received on a 15 year fixed over the standard 30, even if the interest rate were exactly the same, why then would the incentivize the 15? The name of the game for banks these days is liquidity. With a 15 year fixed mortgage, a bank can continue to make a great profit and have their initial investment in half the time to reinvest. This shorter term keeps the bank liquid and able to move into future investments.

Hard Money California

Eliminate your home payment

The current property bust has given Americans good reason to consider a detailed take a look at their financial exposure and limit it where they can. Many property owners now begin to see the advantage of paying down the total amount of the mortgage early, and then while using money they would be spending on their house to get or save. On average, the 15 year loan helps you to save homeowner just below $97,000 in interest per $100,000 borrowed over the life of the borrowed funds.
As interest rate are not likely to be this lower in our lifetime again, it might be wise to consider the loan program that would match your current and long-term financial needs best.

If you are among the three quarters of yankee homeowners that are not currently upside down on your mortgage, and are considering refinancing your current mortgage, you should consider a 15 year fixed interest rate mortgage before locking in a 30 year fixed loan. Here are three reasons the 15 year mortgage continues to be creating a comeback in this economic downturn.

Mortgage Temecula

Record low interest rates

When refinancing from the 7.00% interest rate amortized over 30 years towards the 3.26% interest rate (September 17, 2011 rate according to HSH.com) over only 15 years, the typical spike within the monthly payment is absorbed in the drastic rate cut. When comparing today’s 15 year interest rate to the Thirty year rate just 4 years ago, oftentimes a borrower will pay half the rate interest by switching to the current 15 year fixed loan.

More incentive from banks

Even if comparing the present Thirty year fixed to the present 15 year fixed, it's possible to spend less around the interest rate by choosing a the 15 year option. Based on the December 28, 2011 Bankrate.com interest rates, they are offering a 30 year fixed at 3.98% and the 15 year fixed interest rate loan at 3.28% interest. That's a savings of just about .7% rate of interest. When it comes to the fact that a bank would make far less as a whole interest received on the 15 year fixed within the standard 30, even if the interest rate were exactly the same, why then would the incentivize the 15? The specific game for banks nowadays is liquidity. With a 15 year fixed mortgage, a bank can continue to create a great profit and also have their initial investment in half the time to reinvest. This shorter term keeps the bank liquid and in a position to move into future investments.

Hard Money California

Eliminate your house payment

The current real estate bust has given Americans valid reason to consider a detailed look at their financial exposure and limit it where they are able to. Many home owners now begin to see the benefit of paying off the balance of their mortgage early, after which while using money they would be spending on their home to get or save. Normally, the 15 year loan will save homeowner just under $97,000 in interest per $100,000 borrowed within the life of the loan.
As interest rate are not likely to be this low in our lifetime again, it might be wise to consider the loan program that would fit your current and long-term financial needs best.