Mortgage Refinance Rates
Mortgage refinance rates are available with low interest fixed rate refinancing for prime and sub-prime lending. Choose from 15 and 30-year mortgage rates for refinancing. In refinancing, a lending company usually offers a range of interest mortgage refinance rates at different amounts of points. A point equals one percent of the loan amount. For example, three points on a $100,000 mortgage loan would add $3,000 to the mortgage refinancing charges.
Analyzing various interest rates and associated points may save you money. As a rule of thumb, each point adds about one eighth to one quarter of one percent to the interest rate the mortgage company is offering. If you are a locking a loan now, we recommend fixed rate refinancing, because chances are interest rates will rise in the near future.
Generally, the lower the interest rate on the loan, the more points the lending institution will charge. Some companies offer refinancing with no points, but generally charge higher interest rates. Ask your loan agent about the pro and cons of the 30-year, fixed rate mortgages with your specific situation in mind.
To decide what combination of rate and points is best for you, balance the amount you can pay up front with the amount you can pay monthly. The less time that you keep the loan, the more expensive points become. If you plan to stay in your house for a long time, then it may be worthwhile to pay additional points to obtain a lower interest rate.
Some companies may offer to finance the points so that you do not have to pay them up front. This means that the points will be added to your loan balance, and you will pay a finance charge on them. Although this may enable you to get the fixed rate refinancing, it also will increase the amount of your monthly payments.
The recent increase in FHA mortgage loan limits should significantly assist first-time home buyers and consumers who do not qualify for conventional mortgages. Increased loan limits could also help people living in higher rent areas; Most analysts agree that the current FHA limits make the program unavailable in these areas because the purchase price for home far exceeds the old FHA loan limits.