Government Mortgage Refinance Plan – Save Money on Low 15 Year Fixed Rates
Posted on | February 8, 2010 | 1 Comment
The government mortgage refinance plan was created to help homeowners save money with lower mortgage interest rates. If you are looking to save money on low 15 year fixed rates then there are opportunities available for you. At the present time the 15 year fixed mortgage rate has been quoted as low as 4.23%.
It is important to understand that you are going to pay more in monthly payments on 15 year fixed mortgage rates than 30 year fixed mortgage rates. Obviously the term of your mortgage is going to be much shorter therefore the payments will be higher. What you also need to understand is that you will save a significant amount in interest over that time.
Not only will you get a much lower mortgage interest rate but you will also find that the total amount of interest you pay will be much less. There are many mortgage calculators available online that can help you to better understand how much you would save by going to the government mortgage refinance plan with a 15 year fixed rate mortgage.
There are many options when it comes to refinancing your current home loan. It would be wise to do your research and contact several lenders before starting this process. It is important to note you will not get a 100% accurate rate quote until you go through the mortgage refinance application process.
Author: Jeremy North
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February 8th, 2010 @ 7:43 am
Bad credit creates really bad memories, specifically in the minds of creditors and lenders. And they’re not about to forget any time soon. Access to information regarding your credit standing is easy for the people you need money from. And you know that if your credit report comes out a little less than ideal, you might not always get the loan you need. But the emphasis is on ‘might not’ because even with bad credit, it’s still possible to obtain a mortgage refinance loan. The catch just simply rides on the refinance rate.
Don’t look too low
If you’re trying to obtain a mortgage refinance loan at low rates and you have bad credit, forget it. Bad credit makes you different from the rest of the consumers, particularly those who have decent to good credit standing. The best you can expect is a decent (meaning a moderately high) mortgage refinance rate.
The reason is that lenders are very wary about consumers with a problematic credit history. They’re giving you money, after all and if you can’t pay it back, that spells a loss to their business.
Consider the types of programs available from your lender
Not every mortgage broker can offer you loan programs that are advantageous to you, which means, they probably can’t say for sure which types of loans you qualify for. When looking for budget-friendly mortgage refinance rates, try to find out which loans your lender has. A few you might want to look at:
- FHA financing, which don’t have stringent guidelines. Plus, you’ll like the fact that you won’t get charged a significant downpayment.
- Conventional mortgages (Fannie Mae/Freddie Mac), which could offer you good refinance rates even with bad credit depending on the type of property you want, how much downpayment you can pay and of course, your credit rating.
- Subprime mortgages, another name for bad credit mortgages, typically the type of loan you’ll get if your credit score dips to under 600. The rates you get will depend on the criteria set by your lender and on your credit standing.
Where to find mortgage refinance rates if you have bad credit
The best thing to do is to find out what your credit score is, bad as it may be. This will help give your creditors a more useful figure to use as a basis on which to calculate your refinance rates. You can then talk to your creditor to find out what types of rates you qualify for. Just make sure to get quotes from multiple lenders to identify which one gives you the best deal. Remember that it’s not necessarily just the rate but also the overall package being offered to you.
Another option for finding information regarding mortgage refinance rates you qualify for even with bad credit is to use online sites. Many creditors offer calculators and other resources on their websites that you can use. Simply enter the required information and the tools will calculate your refinance rate for you.
Don’t let bad credit stop you from finding the best deals that will help save you money. Historically, consumers who have taken advantage of mortgage loan refinancing have enjoyed its benefits. Make sure that you obtain all the information you need so you will be able to make the right decisions regarding your finances. Remember that a mortgage loan is something you will be dealing with for a long time.
If you have bad credit, you should be focusing on getting the most advantageous deal possible.
Author: Patrick Okumu