Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. Contact us at 8327302000 and we can match you with the refinance program that is best for your needs. What are your reasons for refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good option might be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. On the other hand, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the ideal way to bring down your monthly payments.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your home needs new carpet; your son has been accepted to college and needs tuition money; or you are planning a special vacation. In this case, you'll want to get a loan above the balance remaining of your existing mortgage.In that case, you'll You will be looking for a loan for more than the remaining balance on your existing mortgage loan in this case. You might not have an increase in your monthly payemnt, however, if you've had your existing loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars each month.
Paying it off Sooner
Do you hope to build up equity more quickly, and pay off your mortgage more quickly? If this is your goal, the refinance loan can switch you to a mortgage loan program with a short, such as a 15 year loan. The monthly payments will likely be higher than with a long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your current longer term loan has a low balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at 8327302000. We are here for you.
Curious about refinancing? Call us at 8327302000.