Hitch - Refinancing to a Fixed-Rate Mortgage

Refinancing to a Fixed-Rate Mortgage

Apr 30, 2023

Are you tired of dealing with fluctuating mortgage payments each month? If you're looking for more stability and predictability in your monthly housing costs, refinancing to a fixed-rate mortgage may be a good option for you. And with Hitch, you can easily explore your refinancing options and find the best fixed-rate mortgage for your needs.

What is a fixed-rate mortgage?

A fixed-rate mortgage is a type of mortgage where the interest rate remains the same for the entire term of the loan. This means that your monthly mortgage payments will stay the same, regardless of changes in the market interest rates. Fixed-rate mortgages are popular among homeowners who prefer stability and predictability in their housing costs.

Why should you consider refinancing to a fixed-rate mortgage?

There are several reasons why you may want to consider refinancing to a fixed-rate mortgage, including:

Predictable monthly payments: With a fixed-rate mortgage, you'll know exactly how much your mortgage payments will be each month, which can help you budget more effectively and plan for the future.
Protection from rising interest rates: If you have an adjustable-rate mortgage (ARM), your interest rate and monthly payments can increase over time as market rates rise. Refinancing to a fixed-rate mortgage can protect you from these fluctuations and give you more control over your housing costs.
Long-term savings: Depending on the current interest rates and your specific financial situation, refinancing to a fixed-rate mortgage can potentially save you money over the long term by reducing your interest rate and overall mortgage costs.

Potential benefit of a fixed-rate loan

One advantage of a fixed-rate loan is that it offers stability and predictability in monthly payments throughout the loan's term, safeguarding against increasing interest rates.

Fixed-rate loan considerations

When considering a fixed-rate loan, it's important to evaluate factors such as the loan term, interest rate, and potential savings compared to variable rate options. Other considerations may include credit score, debt-to-income ratio, and overall financial goals.

Refinancing costs

Refinancing costs refer to the fees and expenses associated with refinancing a mortgage, such as application fees, appraisal fees, title search fees, and closing costs. These costs can vary depending on the lender and the type of loan, and should be carefully considered when deciding whether or not to refinance.

Accomplishing your other goals

When pursuing a mortgage or refinancing, it's important to keep in mind your other financial goals, such as saving for retirement, paying off debt, or building an emergency fund. By considering these goals alongside your mortgage goals, you can make informed decisions and create a comprehensive financial plan.

How can Hitch help with refinancing to a fixed-rate mortgage?

At Hitch, we understand that refinancing can be a complex and overwhelming process. That's why we offer a user-friendly online platform that helps you compare different fixed-rate mortgage options from multiple lenders. Our platform also provides personalized recommendations based on your specific financial situation and goals, so you can make informed decisions about your refinancing options.

In addition, our team of mortgage experts is always available to answer any questions you may have and guide you through the refinancing process. With Hitch, you can rest assured that you're getting the best possible fixed-rate mortgage for your needs and financial goals.

If you're looking for more stability and predictability in your monthly housing costs, refinancing to a fixed-rate mortgage may be the right choice for you. With Hitch, you can easily explore your refinancing options and find the best fixed-rate mortgage for your needs. Contact us today to learn more about how we can help you achieve your financial goals.

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1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.