Refinancing Your Las Vegas Home Mortgage!

By AJ Fanter
Local Lender Columnist
Aug 14, 2006
Worried that rising interest rates will substantially effect the monthly payments on your Las Vegas home mortgage? If you are concerned by rising interest rates, depending upon your situation, it might be time to consider refinancing the mortgage of your Las Vegas home.

As you probably know, when you refinance your mortgage, you pay off your old mortgage and receive a new one with different terms. With interest rates on the rise now might be time to consider switch from an Adjustable to a Fixed Rate mortgage.

Adjustable vs. Fixed Rate Mortgages

While adjustable rate mortgages generally have an initial fixed interest rate that is lower than similar fixed rate mortgages, over time these rates increase based upon the type of ARM you have. For example if you have a "3/1 ARM" your current low interest rate will be locked in for the first 3 years but afterwards it will change (adjust) every year -- which means your monthly mortgage payment will vary right along with it. However, with a fixed rate mortgage, your interest rate is locked in -- along with the payments on your Las Vegas home.

Refinancing Your Las Vegas Home

If the idea of having a fixed rate mortgage sounds appealing, it is important to take the time to calculate whether a refinancing makes sense for you. There are usually costs associated with refinancing so if you are planning on moving or selling your home in a short period of time, it might not make sense. One quick way to find out is to utilize one of the many online refinancing calculators. In addition to helping you decide if refinancing is right for you, these sites also can provide you with current information on interest rates and mortgages available in the Las Vegas area.

About the Author
AJ Fanter is a freelance writer based in Reno, NV.