Fixed Rate Mortgage Refinance
Fixed-rate mortgage refinance loans are a good choice if you:
- Think interest rates could rise in the next few years and want to keep the new rate for the life of the loan
- Plan to stay in your home for many years
- Prefer the stability of a fixed principal and interest payment to a payment that changes periodically
30 Year Fixed Rate Mortgage Refinance
The 30-year fixed-rate refinance mortgage is one of the most popular loans. Many people like the fixed interest rate, and payments are kept more affordable because they are extended over a long period of time. But since the term of the loan is long, you’ll pay more interest over the life of the loan than you would on a shorter-term mortgage, and you build equity more slowly.
20 Year Fixed Rate Mortgage Refinance
A 20-year fixed-rate refinance mortgage helps you pay off your home faster and build equity quicker than a longer-term fixed-rate mortgage. A 20-year fixed generally has a lower interest rate than longer-term loans but higher monthly payments.
15 Year Fixed Rate Mortgage Refinance
You generally pay a lower interest rate with a 15-year loan than you would for longer-term fixed-rate loans. You can save considerable money on total interest paid over the life of a 15-year loan versus longer-term loans, and you’ll build equity more quickly. However, your monthly payments will be higher for a 15-year than they would be on a longer-term mortgage.