When it’s time to shop for a mortgage in Pennsylvania, there are several factors to consider. The length of the loan, the required down payment and the interest rate are only three pieces to the mortgage puzzle. To make matters more confusing, things change from year to year. The mortgage that you secured five years ago might not make sense today.
We see this situation a lot in interest rates. Here’s an example: When you purchased your home, a loan with a variable interest rate might have made financial sense. Today, you might wish that you could take advantage of record-low interest rates. MortgageDepot has access to multiple refinance options that make this possible.
Making the Switch From a Variable To Fixed-Rate Mortgage
When you committed to an adjustable-rate mortgage, you probably reaped the benefit of a low initial interest rate. At some point, the interest rate on an adjustable-rate mortgage will likely increase, raising your monthly mortgage payment. When interest rates are low, many of our clients decide to refinance their adjustable-rate mortgage to a fixed-rate mortgage. Here’s why we recommend making the switch:
The interest rate in a fixed-rate mortgage remains constant throughout the duration of the loan, making your monthly payments predictable.
If our loan officers anticipate that interest rates will rise in the near future, we often encourage our clients to consider refinancing their adjustable-rate mortgages.
If you plan to stay in your home for several years, a fixed-rate mortgage could save money in the long run by avoiding unexpected interest rate increases.
If you have an adjustable-rate mortgage in Pennsylvania, you might be able to secure a lower interest rate permanently by refinancing. Our loan officers have combined decades of experience in helping clients understand the benefits of refinancing. Call MortgageDepot today to see if you qualify and save thousands over the life of your loan!