Refi Home Mortgage Loans How Soon Can You Refinance An Adjustable Rate Mortgage

Refi Home Mortgage Loans – How Soon Can you​ Refinance An Adjustable Rate Mortgage?
Homebuyers have several loan options .​
Hence,​ purchasing a​ new home has never been easier .​
Individuals who cannot afford a​ down payment or​ closing costs may take advantage of​ loan programs that offer assistance .​
Furthermore,​ those hoping to​ obtain a​ low rate mortgage may consider a​ loan with an​ adjustable rate .​
Because of​ the​ initial low cost of​ adjustable rate mortgages,​ monthly mortgage payments are also lower .​
However,​ low rate mortgages are short term .​
To avoid an​ interest rate hike,​ homeowners should refinance before rates begin to​ increase.
Advantages of​ Adjustable Rate Mortgages
There are several advantages to​ accepting an​ adjustable mortgage .​
For starters,​ a​ low rate mortgage allows buyers to​ purchase pricier homes,​ while maintaining an​ affordable monthly payment .​
Moreover,​ because of​ record low rates,​ homebuyers who obtain an​ adjustable rate mortgage can enjoy falling rates without refinancing their mortgage .​
Thus,​ they avoid closing costs and other fees.
Adjustable rate mortgages are also ideal for individuals who plan on​ moving in​ a​ few years .​
Some people enjoy the​ stability of​ living in​ one place for many years .​
In this case,​ refinancing for a​ fixed rate is​ a​ wise choice .​
However,​ if​ you​ prefer the​ flexibility of​ moving every three to​ five years,​ you​ will save money with an​ adjustable rate.
Pitfalls of​ Adjustable Rate Mortgages
While adjustable rates offer many attractive features,​ one major drawback is​ that low rates are temporary .​
If interest rates continue to​ fall,​ you​ will not be subjected to​ the​ dangers of​ these loans .​
However,​ if​ rates begin to​ climb,​ so will your mortgage payment .​
Homebuyers who cannot afford an​ increased mortgage are at​ risk of​ losing their home .​
Thus,​ if​ your goal is​ to​ remain in​ your current home for many years,​ refinancing for a​ fixed rate will offer predictable mortgage payments.
How Soon Can you​ Refinance a​ Mortgage?
Fortunately,​ home mortgage loans can be refinanced whenever you​ like .​
Some lenders suggest allowing the​ loan to​ mature at​ least 12 months .​
However,​ if​ you​ detect a​ change in​ market trends,​ refinancing shortly after purchasing your home is​ a​ smart maneuver .​
Those contemplating refinancing must be prepared to​ pay additional closing fees .​
Moreover,​ contact your current lender and inquire of​ prepayment penalties.
Refi Home Mortgage Loans How Soon Can You Refinance An Adjustable Rate Mortgage Refi Home Mortgage Loans How Soon Can You Refinance An Adjustable Rate
Mortgage Reviewed by Henda Yesti on June 25, 2018 Rating: 5

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