If you’re considering a new loan with a lower rate, and if you’ve been in your house a few years, refinancing into a 15-year mortgage can lower your interest costs. #REFINANCE
Though the monthly payments may be higher, the interest rate can be significantly less than the rate on a 30-year fixed rate mortgage.
Below are a few suggestions to get the best deal when refinancing into a 15-year mortgage.
Compare Loans Most mortgage lenders offer both 30- and 15-year terms. Be sure to compare the rates between the two. For current averaging rates, go to Freddie Mac.
Shop around for a great rate As a mortgage broker, Vanmar Lending shops for the best rates on your behalf. Feel free to research rates online. Small local banks and credit unions often have affordable rates, but the approval process can be more time consuming.
Make yourself look your best as a borrower A lender wants to feel confident you will pay back the loan. A very good credit score will help provide assurance. You can improve your score by paying down debt, getting bill payments made on time and not opening new credit accounts while shopping for a home loan.
Pay as much as you can upfront Making a larger down payment on your refinance loan can help you land an extremely low 15-year mortgage rate for your refi. A larger down payment demonstrates to the lender that you are a good risk and deserve a low rate. Additionally, making a larger down payment to give you at least 20% equity will keep PMI from being attached to your house payment.