Refinancing: Which Loan Program is for You?

Even though it may seem like it at times, there are not as many loan programs as there are applicants! Contact us at 8327302000 and we can help you qualify for the perfect refinance loan to fit your needs. There are several things to have in mind while you review your options.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate loan may be an especially good option for you. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you expect to move in the next few years.

Getting Out some Cash

Are you hoping to cash out some of your home equity in your refinance? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you need to find a loan higher than the remaining balance of your present mortgage loan.So you'll need However, if your loan interest rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.

Debt Consolidation

Maybe you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have enough equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.

Paying it off Faster

Are you dreaming of paying your loan off faster, while building up your equity quicker? If this is your wish, your refinance mortgage can change you to a mortgage loan program with a shorter term, such as a 15 year loan. The mortgage payments will likely be more than they were with a long-term loan, but in exchange, you will pay quite a bit less interest and will build up equity quicker. However, if you've held your current thirty year mortgage loan for a number of years and the loan balance is rather low, you may be do this without raising your monthly mortgage payment — you may even be able to save! To help you understand your options and the multiple benefits of refinancing, please call us at 8327302000. We can help you reach your goals!

Curious about refinancing your home? Call us at 8327302000.

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