Depending on current available interest rates, refinancing can be an effective way to reduce interest rate on a mortgage.
When interest rates are high, ARMs are an attractive option because they typically are at a much lower interest rate than a 30-year fixed-rate mortgage. Conversely, when interest rates are low, the differential between the fixed-rate and the ARM isn't as significant, so borrowers may prefer the security of locking in a fixed rate over the mortgage term.
If you are considering refinancing to reduce your interest rate, it is important to know where you stand with your current mortgage. Consider the loan terms and interest rate, as well as factors such as your credit score and whether or not the loan has a prepayment penalty.
First Liberty is here to help you understand all of the aspects and details of the refinancing process. Our knowledgeable mortgage lending experts will assess your specific situation and help you to determine how you can reduce the interest rate on your mortgage.
If you'd like to discuss how refinancing may help you to reduce your interest rate, contact us today.