Posted by Apex Home Loans ● August 12, 2020

2 Tips for Leveraging Today’s 10 Year Refinance Rates


As COVID-19 reorders our society, economic measures taken by the federal government have driven down 10-year refinance rates. In response to customer demand for refinancing, Apex has launched Refinancing Recommendations, a blog series spotlighting our top tips for leveraging today’s favorable financing. In our third and final installment, we’ll explore two tips for refinancing into a 10-year mortgage.

  1. Think Bigger than Rate and Term

At Apex, we allow homeowners to dream bigger than simple rate-and-term refinances. If you have considerable equity in your home, or your home has appreciated in value, today’s 10-year refinance rates could enable you to consider a cash-out refinance. This type of refinancing allows you to take a lump sum cash payment from your home equity based on the current appraised value of your home, enabling home renovations, payment of debt, or the start of a new chapter in your life. Your new mortgage may also offer a lower interest rate to boot.  

Deploy Apex’s Find Your Financing tool to define your refinancing goals.

  1. Consider Amortization Schedules

Your loan’s amortization schedule details the principal and interest due each month and reflects the remaining loan balance after payments are made. All mortgages are amortized such that borrowers pay more interest than principal at the beginning of their loan term, and then gradually contribute more to principal as the loan term progresses. Refinancing a mortgage for which you have made a significant number of payments (say, a 20-year-old, 30-year fixed rate mortgage) will impact the percentage of your payment that is contributed towards principal. Weigh the savings of a reduced rate against both the decrease in the pace at which you will gain equity and how long you plan to remain in the mortgage.

Proper Planning is Key

Every mortgage – especially a refinance – should be structured to complement your financial goals and plans for the future. When refinancing into a 10-year mortgage, take time to define your goals and consider amortization schedules. Whether you enlist a mortgage banker to help structure a loan suited to your needs or leverage online resources to get started, Apex is here to help.

Please be aware: by refinancing your existing mortgage, your total finance charges may be higher over the life of the loan


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Topics: Refinance, Refinancing Your Home, Refinancing Simplified, refinance rates, 10 year refinance