Current mortgage rates available at Total Mortgage make it a great time to refinance your mortgage. Refinancing refers to replacing an existing mortgage with a new home loan that has different terms. It is economically viable for borrowers to refinance when mortgage rates are lower than the rate they are currently paying.
When refinancing many borrowers choose to take out fixed rate mortgages. Currently a 30 year fixed conventional mortgage has a 4.125 percent mortgage rate and a 4.323 percent APR. The 15 year conventional mortgage, a popular mortgage for refinancing, has a 3.625 percent mortgage rate and a 3.972 percent APR.
Borrowers may also consider refinancing with a FHA mortgage. A 30 year fixed FHA mortgage has a 4.000 percent mortgage rate and a 5.178 percent APR. If you are refinancing a larger loan you may need to think about a jumbo mortgage. A 30 year fixed jumbo mortgage has a 5.000 percent mortgage rate and a 5.203 percent APR, while a 15 year fixed jumbo mortgage has a 4.000 percent mortgage rate and a 4.349 percent APR.
Borrowers refinance for many reasons. Some of the most popular include:
• Paying off your current mortgage while reducing your monthly payments and mortgage rate.
• Paying off your current mortgage while taking out cash.
• Paying off your current mortgage and shortening the terms of your mortgage (changing from a 30 year mortgage to a 15 year mortgage).
• Paying for credit cards, home improvement, or other debt consolidations, so long as you qualify with your home equity. Borrowers can refinance with a loan larger than their current mortgage and keep the cash difference. This is referred to as cash out refinance.