Is it Time to Refinance From an Adjustable Rate Mortgage to a Fixed-Rate Mortgage?
If you have an adjustable rate mortgage and noticed your mortgage payment has been steadily rising each month, it might be a good idea to refinance to a fixed rate mortgage instead.
While adjustable rate mortgages can be attractive compared to a fixed rate in the beginning due to the often lower interest rate, rates are likely to increase over time. Locking in a rate with a fixed rate mortgage allows you to know exactly how much your mortgage will be each month and avoid rising rates.
Below are some advantages for fixed-rate mortgages to consider:
- Rates and payments remain constant, despite what happens in the broader economy.
- Stability makes budgeting easier. People can manage their money with more certainty because their housing payments don’t change.
- Simple to understand, so they’re good for first-time buyers who wouldn’t know a 7/1 ARM with 2/6 caps if it hit them over the head.
There are many reasons to refinance with First Ohio Home Finance:
- Lower interest rates for monthly savings
- Shorter loan term for overall savings
- Debt consolidation
- College tuition
- Cash home improvements
First Ohio Home Finance can assist in the evaluation process to determine if refinancing is the right move for you. Throughout the entire loan process, our mortgage bankers will help by offering a customized program to meet your financial requirements and by providing the individualized attention you deserve. Contact us today to learn more!
