Choosing a Refinancing Option
Even though it seems like it at times, there aren't as many loan programs as there are applicants! Contact us at 8327302000 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better payments and a better rate your main refinance goals? If so, your best choice could be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even if rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the term of your mortgage. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a good option. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a low initial rate may be the ideal way to reduce your monthly payments.
Are you hoping to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has gone to college and needs tuition money; or you are planning a special vacation. With this in mind, you will need to find a loan above the balance remaining on your present mortgage loan.Then you need If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.
Do you hold other debt, maybe with a high interest rate, that you'd like to consolidate? If you hold some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while building up your home equity quicker? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. Even though your mortgage payment amount will usually be more, you can save on interest; so your equity amount will build up faster. But, you may be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is small. You may even make it lower! To help you determine your options and the numerous benefits of refinancing, please contact us at 8327302000. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: 8327302000.