Which Refinancing Loan Program is Right for You?
The huge number of refinance options available can be overwhelming. Contact us at 8327302000 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right option for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you expect to stay in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you expect to move in the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your home needs renovating; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. With this in mind, you will want to find a loan above the remaining balance of your existing mortgage loan.In this case, you want to need to qualify for a loan for a bigger amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have enough equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while beefing up your equity faster? If this is your plan, the refinance loan can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity faster, although your monthly payments will generally be higher than they were. On the other hand, if your existing long-term mortgage has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at 8327302000. We can help you reach your goals!
Curious about refinancing your home? Give us a call at 8327302000.