Fixed Rate Refinance

Home Loan

No pledge of allegiance...

When you apply for your first mortgage you'll probably spend months looking for the very best lender. And you get your home loan - after searching for so long you find a lender that is affordable, flexible, and completely understanding of your needs. Good for you, thats the kind of lender you want and you probably got a truly good deal. No forget about it and start looking for that refinance right away - it is always a good time to look for something better.

Think twice about ditching your home loan

The early 1990's saw a dramatic decline in rates and home loan costs across the country. For someone who had a home loan for a few years it was easy to refinance - if you had a fixed rate at 12% and you could refinance to 7%, why not do it? But for new home owners they were faced with a tough decision - should they already move onto a better home loan after just receiving and locking into their first? The answer is a tricky and tentative yes.

Sudden refinancing might not be so good

Yesterday you took out a home loan, an ARM with a 6.5% fixed rate for your initial five year term. Today, rates fall to 6.0% on that same deal - do you or do you not refinance?

Refinancing home loans costs a lot of money, and you've only just stepped into the world of home ownership. You might not have the money to cope with a refinance just yet
refinancing too soon may also be a bad sign to future lenders of your over-willingness to leave. If a lender sees you as a flight risk, that risk will translate into higher interest and maybe even the need for a bad credit home loan.
five years from now your rate will adjust to that lower rate regardless - so if its still around you will enjoy it and if its high again your adjustment rate caps will keep that rise manageable.

Our advice here at Fixed Rate Refinance would be to settle down into your current mortgage for a time, build up some home equity and get used to the whole home owning business. Yes, you could get a better rate elsewhere - perhaps a countrywide home loan would result in immediate savings - but you just got into your mortgage and you need to show some dependability. Build up some equity, take out a home improvement loan and invest in your financial future that way - the greater stability and the greater equity you can put up when you decide to refinance the better your opportunity of finding a truly beneficial, truly affordable deal.