Like interest rates everywhere, the mortgage interest rates in Kansas are constantly on the move. If you have a Kansas mortgage loan and you are thinking about refinancing, learning everything you can about Kansas refinance rates will be to your benefit.
Approximately half of the new mortgage loans in Kansas are adjustable rate mortgages (ARMs). This financing option is very popular because it allows borrowers to take advantage of low introductory rates, and in turn, lower monthly mortgage payments. When average interest rates drop, the rates on your mortgage follow suit. The bad part about ARMs is that average rates are constantly fluctuating. While payments may be low in the beginning, they can easily rise out of control within a few years. Current 5/1 ARM rates in Kansas average 5.67 percent.
If an adjustable rate mortgage sounds too risky to you, you also have the option of refinancing to a more dependable fixed rate mortgage. Fixed rates are normally a little higher than adjustable rates, but they are beneficial because the rate remains steady through the life of your loan. Regardless of what average rates are doing, your mortgage rate will never change and neither will your monthly payments. Current fixed rates on 30 year Kansas mortgage loans average 5.94 percent.
Getting a Good Refinance Rate
One of the main reasons to take out a Kansas refinance loan is to get a low interest rate. If you want to get the best deal and the best rates on your refinance, you will need to do some comparison shopping. Try to get quotes from several different lenders before making any refinance decisions. Whenever possible, compare ARM rates with other ARM rates and fixed rates with other fixed rates.