When it comes to picking a term for a mortgage, one of the most popular is the 30-year term. 30-year fixed-rate mortgages are very popular, s they are suitable for refinancing. They provide home buyers with the flexibility to afford larger mortgage loans, as the payments are more and more affordable, spread out over thirty years.
They also provide the security of a fixed principal and interest payment.
Comparing 30-Year Fixed Mortgage Refinance Rates
Before you go out and refinance your mortgage, you want to determine why you are doing it in the first place.
Are you looking to cut back on your monthly payments?
Are you looking to secure a long-term interest rate that is better than the one you have now?
Maybe you just want to receive a bit of cahs when during your refinance?
Regardless of your situation, our team of Denver CO mortgage broker wants to provide you with the necessary info to make the best decision.
Finding the Best 30-Year Firx Rate Mortgage Refinance Rates
A 30-year fixed-rate mortgage will have the same interest rate, as well as the same monthly principal and interest payments, over a 30-year term of your loan. You want to get the best rate possible when you refinance for the long haul.
You want to start by making sure that your credit is as accurate as it can be. This is because your rate is greatly impacted by your credit score, as well as your down payment. If you continue to research different lenders for different mortgage rates, you will likely get a much lower interest rate when you finally decide to refinance.
A lower interest rate could easily save you thosands of dollars over the life of a mortgage.
Advantages of a 30-Year Fixed Mortgage
- Lower Payments: Payments over a 30-year period are much lower than they are with shorter terms, as they are spread out much further. If you want to lower your payments, a 30-year fixed refinance is a great idea.
- Predictability: Fixed rates will stay the same over the life of a loan, meaning you can expect to thave the same interest rate and monthly principal in ten years.
- Larger Loans: You have the ability to borrow more with a larger loan, as they monthly payments are much smaller.
Disadvantages of a 30-Year Fixed Mortgage
- Higher Interest Rates: Lenders have to tie up their money longer with higher interest rates, meaing you will have to pay more in interest.
- The Risk Of Over-Borrowing: Many home buyers borrow far more than they need, as 30-year loans allow you to borrow more. Unfortunately, this can translate to a lack of funds for other areas of your life, such as food, entertainment, and more.
Making the Most Out of a 30-Year Mortgage
We’re all about helping our clients to achieve comfort throughout the mortgage process. If you’re ready to take the leap and buy that dream home, then make sure to get in contact with us for your free consultation!