With Dallas Fort Worth area mortgage rates at record breaking low levels, Texas homeowners are encouraged to compare 30 year and 15 year Fixed Rate Refinance options. More and more Texas homeowners are considering taking advantage of historic low refinance rates by switching to shorter term loans. 15 year fixed rate mortgage payments have never been this affordable in history.
While 30 year fixed rates are also at historic low levels and allow homeowners to increase monthly cash flow into the household, 15 year fixed rate refinances allow homeowners to build equity in the home much faster.
Take a look at the comparison below. You can see the current homeowner that purchased their home just two years ago at a great 30 year fixed rate of 4.75 is able to drop their interest rate to 3.625% on a 30 year option or 3% on a 15 year option. On the 30 year fixed rate option, if the homeowner continues to make the same payment as their making on their current loan, they’ll save over $60,000 in interest and payoff the loan 4.5 years faster. Even if the homeowner opts to increase the balance of the new loan and roll in the closing costs to avoid having any out of pocket expenses, they will have approximately $7,000 more equity in their home in just 5 short years – making the same payment that they are making right now!!
Now, if this homeowner has the budget to pay a little more per month, then they can really take advantage of low interest rates on a 15 year fixed refinance. This scenario would save this homeowner over $111,000 in interest total and give them over $35,000 more equity in just 5 years. With this kind of savings, you can see why more and more Dallas Fort Worth homeowners are switching to 15 year fixed rate refinances!!
**These rates were based off current pricing (7/26/2012) of someone with excellent credit scores (over 740 fico scores) on a Conventional 200k loan amount with 20% equity. Rates do fluctuate daily and change from one scenario to another, so to get a FREE rate quote, complete the form below or email email@example.com today! Lender fees do vary from lender to lender, so make sure to select a lender with low refinance fees. These scenarios were based off of no rate buydown, discount points, origination points, or junk fees – total lender origination charges under $700.