20 Year fixed Rates

So you wanna refinance or lock in to a new mortgage rate, eh?

Mortgage rates have never been lower in the history of the modern mortgage. They could’ve been lower in the Stone Age, or maybe even the ice age, but not in the modern age.

While rates can fluctuate on a weekly basis, one thing is constant – rates are hovering around all-time lows, and you should take advantage of them.

You also probably didn’t know about all of the great options out there, so take a gander and see if any of these might be right for you.

30-year fixed-rate loan

You know the old saying, “Why reinvent the wheel?” That’s pretty much applicable here because 30-year fixed-rate mortgages are by far the most popular loan option out there. If you plan on staying in your home for a while and want a super-low rate that’ll never rise throughout the life of your loan, a 30-year fixed-rate mortgage is right up your ally, Sally. Plus, you’ll have the smoothest path to easy budget planning out there, because you know that your payment will never go up month to month.

30-year fixed-rate FHA loan

You’re probably wondering what in the world are these three letters mixed in with what you just told me was the most popular loan out there. The fact of the matter is that some potential homeowners, and even some current homeowners, have less-than-stellar credit scores. That’s where the Federal Housing Administration comes in. The FHA will secure these types of loans, making FHA loans easier to qualify for because of less stringent requirements. On top of that, you can buy a home with a low down payment, which is always a perk in my book.

15-year fixed-rate loan

The beauty of the 15-year fixed-rate mortgage is that you’ll still get a low rate that never rises, but you’ll save a significant amount of money on interest over the life of your loan. Now, your monthly payment will be higher than, say, a 30-year fixed-rate loan. However, the savings in interest you’ll get paying off your mortgage over 15 years instead of 30 years is dramatic. Also, it’s a great option if you don’t plan on staying in your home for longer than 15 years and is great for the financially savvy folk out there.

30-year fixed-rate VA loan

If you’re a veteran, member of the military, or a surviving spouse of a military member, first and foremost – thank you for what you do or what you’ve done. As a result of your or spouse’s service in the military, you’re entitled to a great luxury called a VA loan. VA loans provide eligible homeowners with 100% refinancing and no down payments for those looking to buy a home. Pretty sweet, huh? Combine that with fast approval, minimal red tape, and all of that other good stuff I talked about earlier with a regular old 30-year fixed-rate loan, and you could be looking at a winner.

20-year fixed-rate loan

Financially savvy homeowners across the country have refinanced from their 30-year to a 20-year fixed-rate mortgage to help pay off their home faster with much less interest. If you’re underwater, refinancing to a shorter-term mortgage can help you get your head above water way faster. It’s a fairly new product, but you can get a low rate that’ll never rise and a payment that’ll never change throughout the life of your loan, so give it a shot – especially if you’re underwater!