What’s the best type of mortgage to refinance to?

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Should we stick to a 30 year fixed, try an ARM option? Our goal is to lower our monthly payment. What about 40 year loans?

  1. Reply
    May 17, 2011 at 10:16 am

    I would go with a 30 year and set it has a goal to apply monthly reductions during the life of the loan. Build some equity and pay less interest.

  2. Reply
    May 17, 2011 at 11:06 am

    It depends on how long you plan on living in your home for. If you’re going to be moving in 5 years then you should look into an ARM or possibly an interest only product. Also your credit score and mortgage history are going to be a factor. 40 year mortgages are a good product to lower your monthly payments, but there is usually a “balloon” payment due in 30 years. The longer you plan on staying in your home the more I would look to a fixed product.

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