What many people aren't aware of (unless you read the fine print of course) is that rates have dropped significantly. Most people who are still at a 4% rate or higher may actually benefit from a FMERR Refi Program.
Let's dig a little deeper and compare the benefits of a 15 year vs 30 year rate.
1. You Can Get a Lower Interest Rate on a 15 Year
Banks, lenders and private institutions will always give you a lower rate on a 15-year note vs. 30 years. A 30 year may be a 4.2% rate while a 15 year may be 3.8% (scenario). What you should do is use our FMERR Refi tool and you can compare instantly/calculate the savings of your mortgage
2. You Should REFI When Rates Are Low
A big myth is refinancing starts your loan over – that is far from true. What you should know is refinancing does change the terms (usually for the better when rates are low). Only those who take cash-out may alter their balance, many people will refi to get a lower rate and lock in savings, in some scenarios taking cash-out for home improvements may not be a bad idea. Always calculate the costs against multiple lenders
3. Always Compare Rates – Banks Are Not Always the Lowest
Always compare rates, often times credit unions and other lenders/institutions may offer a better rate. We put together a free tool so you can take the guesswork out of comparing. The different between a 4.2% rate and a 3.7% rate may seem small but will actually make a significant difference over the course of the loan