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Posted by: takeme2thebnk on 2008-01-08, 01:12:58
It depends. Usually stable, and lowered, do not go hand in hand. For a lower monthly payment you will usually have to go with an adjustable (ARM) mortgage, which is essentially stable, but only for so long. Ex. a 5 year fixed is fixed over 5 years, then it adjusts according to whatever index the bank uses, and it proceeds to amortize over a 30 year period. If you want a stable loan you go with a fixed. In my opinion 15 year is the best, because it allows you to save a little with the interest rate, but it is stable over 15 years. By the time the 15 years rolls around you should have a number of options to choose from because there should be a fairly large amount of equity in your property. The idea of refinancing your loan is to lower the payment usually, but continually refinancing the loan is not always the best idea, unless you are an investor putting that money to good use. Hope I helped. |
