Mortgage for beginngers
However, the extended term also allows more interest to accrue. A loan calculator can help you work out whether an offered loan really offers you savings. If the total comes out to more than the total of your previous loan, either pay more than the minimum each month to informally shorten the term of the loan, or do not refinance. * Refinance with a fixed rate mortgage, not a variable rate mortgage. Even though the variable rate mortgage's monthly payments may be lower than the fixed, rates are so low right now that you are less likely to benefit from a rate drop after the introductory period is over.