Before the foreclosure crisis, people would have no problems buying a home with a 30-year loan. But since the foreclosure crisis, people are looking at their debts in a much different way. Many people know someone who is going through foreclosure, or they have been watching the news, and reading the newspapers. They know how volatile and frightening the financial market has become, and they are beginning to become less secure in a future that they once believed was solid.
And, with rates so much lower now, many can afford to pay a 15-year monthly payment just as easily as they used to pay a 30-year mortgage. The interest rates for most fixed rate mortgages are now under four percent. But that doesn't necessarily mean refinancing is the way to go. Not everyone has the stellar credit banks want these days to get a loan in the first place. What to do? Keep your current mortgage and pay it in half the time.
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