Yahoo Finance
As part of the economic fallout from the coronavirus pandemic, the floor has dropped out from under mortgage rates. They've hit their lowest levels in history, and homeowners have been rarin' to refinance.
Mortgage refinance applications have been piling in at levels three to four times higher than lenders were seeing last year at this time.
If you own a home, have a 30-year mortgage and have concluded that you could benefit from refinancing, it's natural to immediately consider pulling the trigger on another 30-year loan.
You'll shrink your monthly payment, possibly by hundreds of dollars, which is a great way to give your budget some breathing room during this time of economic stress.
But in the process, you'll raise your overall costs — often substantially.
Personal finance personality Suze Orman says it's wiser to refi into a 15-year loan. "Do not refinance and extend your years," she recently said, in an interview with People.
Yet other experts say shortening your loan term is not a smart idea — especially not during the current crisis.
See the arguments on both sides to help you decide whether a 30-year or 15-year refinance is the right choice for you.
Rest of the article here.
MoneyWise
As part of the economic fallout from the coronavirus pandemic, the floor has dropped out from under mortgage rates. They've hit their lowest levels in history, and homeowners have been rarin' to refinance.
Mortgage refinance applications have been piling in at levels three to four times higher than lenders were seeing last year at this time.
If you own a home, have a 30-year mortgage and have concluded that you could benefit from refinancing, it's natural to immediately consider pulling the trigger on another 30-year loan.
You'll shrink your monthly payment, possibly by hundreds of dollars, which is a great way to give your budget some breathing room during this time of economic stress.
But in the process, you'll raise your overall costs — often substantially.
Personal finance personality Suze Orman says it's wiser to refi into a 15-year loan. "Do not refinance and extend your years," she recently said, in an interview with People.
Yet other experts say shortening your loan term is not a smart idea — especially not during the current crisis.
See the arguments on both sides to help you decide whether a 30-year or 15-year refinance is the right choice for you.
Rest of the article here.
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