Homeowners who are looking at a high mortgage payment, a mortgage that is straining their finances, or just wanting to refinance for a lower rate may be able to do so and get a rate around 5% or lower.  Refinancing can bring down your monthly payment and make your mortgage more manageable.

Remember though, to get a rate of 5% or lower—in some cases homeowners are getting a rate of 4.75%—you are going to have to have a pretty good credit score.  However, if your score isn’t as high as you may want, there still may be the chance that you can refinance for a rate that is going to be lower than what you currently have with your mortgage and possibly still bring a lower mortgage payment.

There are countless ways to refinance a mortgage and homeowners looking for a lower interest rate and mortgage payment are turning to a 30-year fixed rate mortgage.  However, some homeowners who can afford to do so are refinancing for a 15-year fixed rate mortgage, which brings an even lower interest rate, but a higher monthly payment.  However, the 15-year mortgage, even with the higher monthly payment, will save you money in interest over the long run.

If you are having troubles with your mortgage you may want to look into refinancing.  If this is not an option you can also try a home loan modification in order to bring your mortgage payment lower.  Before making any decisions, look at your financial situation and be sure that you are making a choice that is in your best interest before proceeding.

found at Red, White, and Blue Press