Low Rate 15 Year Mortgages Popular
Refinancing Choice for Some
Source:
Informa Research Services
According
to recent reports, 26% of homeowners who refinanced their homes during the first
half of this year chose to do so using a 15-year fixed rate mortgage
(Source:
Yahoo.com).
Comparatively, 18.5% made this same choice in 2009 and only 9.4% did in
2007.
So
what is the reason behind this noticeable shift? One factor that may be
contributing to this movement toward shorter term home loans is the low
mortgage rates witnessed across the board. This week, the national average annual percentage
rate on 30 year mortgages dropped once again to just 4.58% according to Informa
Research Services. Similarly, the 15 year mortgage national average fell to
just 4.08% this week.
Usually,
a shorter loan term means an increased monthly payment. However, paired with a low
rate,
this can actually equal a payment similar or, in some cases, lower than a
homeowner’s current monthly payment. Moreover, in addition to paying your house
off faster, you will also pay much less interest over the entire term of the
loan.
To
find the best deal on mortgage products, look online to search for low mortgage
rates. Even though the current national average is already low, because it is
an average, this indicates that there are numerous rates being offered both
above and below this level. Use
online rate tables to find the lowest mortgage rates.
