![]() |
Home Loans -- The Hot New Product? The 30-year, Fixed-rate MortgageIn recent years, the mortgage industry has introduced dozens of new types of loans. The needs of every borrower are different, so the mortgage companies have tried to come up with an answer for every problem. They've introduced 40-year mortgages, promoted 15-year mortgages, and introduced the wildest array of variable-rate mortgages imaginable. There are mortgages that have interest rates that adjust every few months, every few years, or just once. A recently popular product that thrives on the East and West coasts is the interest-only mortgage, which reduces payments by not requiring payment on the loan's principal for the first few years of the loan. The prospective homebuyer could have as many as one hundred possible types of loans to choose from when searching for a mortgage. Amidst this huge array of loan types, one type is growing in popularity faster than all the rest, and it may surprise you. The fastest-growing type of mortgage in America right now is the traditional 30-year, fixed-rate loan. Last year, only about 35% of all borrowers took out a 30 year, fixed-rate loan, but so far this year, the rate has increased to nearly 50%. This may seem odd, as most everyone has been opting for adjustable-rate mortgages for the last few years. Adjustable rate mortgages tend to offer lower interest rates, and lower interest rates mean lower payments. These loans have been popular with buyers who move often, have lower incomes or buyers who simply want to invest their money elsewhere. So why is the 30-year fixed-rate mortgage back in style? Because interest rates have dropped to their lowest point in fourteen months, and they are nearly as low as they were in the summer of 2003, when they reached the lowest point on record. In short, the 30-year fixed-rate mortgage is not only seen as competitive with other types of loans, but it is actually seen as safer. Borrowers who have adjustable-rate mortgages enjoy their biggest advantage when rates are high, knowing that their interest rate is lower than a fixed-rate mortgage. But when interest rates for the market as a whole reach historic lows, the borrower with an adjustable-rate mortgage knows that their rate can only go up. At times like the present, when rates are only likely to go up, converting an adjustable rate loan to a fixed-rate loan is a smart move. First-time buyers can safely take on a 30-year fixed-rate loan and be comfortable in the fact that their rate will stay fairly low for the duration of their loan. Sometimes, the way things have always been done turns out to be the best. While there are still some buyers who will benefit from adjustable-rate loans, most borrowers would do well to lock in their loan at a fixed rate now. Historically, fixed-rate mortgages have rarely been under six percent, so obtaining such a loan while they are available is one of the smartest moves a homeowner can make. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
20-year mortgage refinance rates edge down after upward bounce yesterday | June 7, 2022 Fox Business MORTGAGE LENDING PLUMMETS ACROSS US IN FIRST QUARTER AMID SHARP DROPS IN PURCHASE AND REFINANCE ACTIVITY PR Newswire Cash-Out Refinance vs. HELOC: Which Should You Choose? Business Insider Refinance apps are 80% below their 2021 level National Mortgage News As Fixed Rates Rise, Should You Consider an Adjustable-Rate Mortgage? | Mortgages and Advice | US News U.S News & World Report Money 5 Best Ways to Use a Home Equity Loan | Mortgages and Advice | US News U.S News & World Report Money Refinance Calculator Bankrate.com Trends in Mortgage Refinancing Activity Freddie Mac Today’s mortgage refinance rates: Steady shorter terms offer best savings chances | March 17, 2022 Fox Business When to Refinance Your Mortgage Business Insider Does It Ever Make Sense to Buy a Home if You Have Bad Credit? The Motley Fool Can You Refinance a Reverse Mortgage? Investopedia Today's Mortgage, Refinance Rates: June 18, 2022 | Rates Remain High After Recent Spike Business Insider How to refinance your mortgage, a step-by-step guide The Washington Post Today's Mortgage, Refinance Rates: June 22, 2022 | Rates Probably Won't Decrease Soon Business Insider The Mortgage Refinance Rush Has Cooled, But HELOCs Can Unlock Housing Wealth Hawaii Business Magazine Is It Too Late to Refinance Now That Mortgage Rates Are Soaring? The Motley Fool Mortgage Refinance As An Inflation Hedge Surfky.com Jumbo Loan Refinance Guide | 2022 Rates and Guidelines The Mortgage Reports 3.8 million homeowners would still benefit from refinancing amid rise in mortgage rates, says Black Knight Fox Business How Long Does It Take To Refinance A House? Zing! Blog by Quicken Loans After Losing Her Home in a Fire, This Teacher Needed a Fresh Start. A Mortgage Refinance Helped Her Do It NextAdvisor 10 Mistakes To Avoid When You Refinance a Home Loan GOBankingRates Home Mortgage Refinancing Disparities During the COVID-19 Pandemic: Insights for Delaware, New Jersey, and Pennsylvania Philadelphia Fed Still time to lock in a lower rate: Today's 30-year mortgage refinance rates fall | Feb. 9, 2022 Fox Business Cash-out mortgage refinancing hits 14-year high The Real Deal Should You Refinance Your Mortgage in 2022? The Motley Fool Can You Refinance A VA Loan? Zing! Blog by Quicken Loans The cost to refinance a mortgage: What to expect | Mortgage | Chase Chase News & Stories 3 reasons it’s not too late to refinance your mortgage CNN Underscored Cash-In Refinance: What It Is And If It's Worth It Zing! Blog by Quicken Loans What Do Appraisers Look for in a Mortgage Refinance? Business Insider Texas' Best Mortgage Lenders & Current Mortgage Rates | US News Loans U.S News & World Report Money Mortgage demand falls to nearly half of what it was a year ago, as interest rates continue to rise CNBC Cash-out refinance vs. no-cash-out | What's the difference? The Mortgage Reports
|