30 year fixed mortgage rates are the safest options you have available to you. If you are planning to refinance your construction loan into long
term financing, 30 year fixed mortgage rates are your best bet in a good or bad economy. Most however preferred the sexy adjustable rate mortgages
or interest only mortgages, which led to many foreclosures.
The allure of very low mortgage payments for the first few years proved too enticing. People bought under the impression that housing prices
never declined. They thought that at some point in the near future, we will just refinance into a long term fixed mortgage.
Many prefer the 30 year fixed mortgage rates option because it gives them longer to pay off their loans, reducing their monthly payments. This
especially is an excellent option for new homeowners who have just completed their home building project with a construction to permanent loan,
as it is much easier to get it approved.
Another advantage of applying for a 30 year fixed mortgage rate is that the interest rates remain the same for the entire 30 years. In other
words it is not susceptible to changing markets rates. Also, a lot can happen over a 30 year span. Your salary could increase and this would
leave you with more disposable income!
Most new homeowners find this an excellent option because it gives them the basic framework of how much they are to pay every month as their
monthly mortgage payment. Since the monthly payment is stable, they don't worry about the prevalent market lending rates.
However, before you apply for the loan, make sure you have all your expenses including debt payments listed. This should give you an idea of how much you can afford to pay.
The higher the down payment the lower your monthly payment will be. The interest on your loan will also reduce. This is because most lenders
calculate the interest rates on the outstanding balance of the loan.
If you only have a construction loan and are looking for permanent financing to lower your monthly payments, you can also, opt for a refinance to
30 year fixed mortgage rates. This will allow you to pay off your existing high interest rate construction loan balance and reduce your interest
rates with a conventional mortgage!
Don't make the mistake of only being concerned with rates and fees. You have to remove yourself from the equation and look at the big
It is best to check with your loan officer about the amount of your refinance so you don't request more than required for your situation. With a
refinance option for your newly constructed home you will be saving thousands in interest.
With good home equity you can borrow a little more than what your current balance and help pay off your debts! Acquiring 30 year fixed mortgage rates is the safest investment you can make in your families future.
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