What is the difference in the fixed terms in a mortgage, 10, 15, 20, 25, 30? Sound like a bunch of mumbo jumbo? Today's society is fixed upon payment. What payment can you afford and where will you be in five to ten years is always a good starting point. Since the interest for the first five to ten years of a mortgage is all that gets paid during the mortgage, the principal balance tends to remain unchanged. When refinancing your home take into consideration the costs associated with the loan itself. Fees that just show up to conduct the transaction.

Many folks take their equity out of the there home and use it for current needs, such as college, or accumalated debt. Real Estate in general appreciates over time in many areas up to 5% per year. However, when it comes to a mortgage the term can become very expensive. If your plan is to sell your home in 10 years for example, reducing your term will have a large impact on your principal thus when you get your home sold more dollars from the transaction actually go into your pocket. If your plan is to go longer consider reducing the interest rate which ultimately lowers your cost of ownership. Rates are historically low but in order for any business to prosper there must be a profit associated. When the rates are low like today, the raters are being artificially stimulated to attract more purchase transactions. Build more new homes, it creates jobs and economic upswing. Typically election rhetoric is a side step to recovery. The interest rates have to rise for profit to begin and for more banks to loosen the strings. Bottom line if you are interested in refinancing to help your overall return on investment then investigage now, before those rates begin to rise like the cost of peanut butter.

Happy Hunting!

Cheers