With Interest Rates Falling, Should you Stay in an Adjustable Rate Mortgage or Refinance?
Once you’ve gone through the hassles and complications of buying a home you probably want to be done with everything as soon as possible. However, the details of home ownership aren’t set in stone – for example, you may have just finished signing all the paperwork for your mortgage loan, but that doesn’t mean you can’t refinance in order to take advantage of even better rates. A refinance can often save you a few thousand dollars a year! If you’re in an ARM (Adjustable Rate Mortgage) then you may want to think about refinancing, seeing as interest rates are falling.
Adjustable rate mortgages are probably the most common mortgage sold today. One reason they’re so popular is because you (the borrower) can refinance an ARM mortgage whenever you want. (Bear in mind that some states will only allow you to refinance your mortgage one time per year, so make sure you’re aware of the mortgage refinancing laws specific to your state). Now could be the right time to refinance, because interest rates are falling, and you could find yourself with a better mortgage deal.
To learn more about whether you should stay in your ARM mortgage or refinance, be sure to call or meet with a lending professional. The real estate market and the banks are in serious trouble these days – with many people ascribing the overall malaise to mortgage-related problems – so you need to know what you’re doing before you seek to refinance your mortgage, whether it’s an ARM or any other kind of mortgage. You worked very hard to earn your home, so don’t make an uninformed decision about it.