Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 8327302000 and we can match you with the loan program that is best for you. There are some general questions to ask yourself while you look at the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good option may be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your loan, even when interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. However, an ARM with a initial low payment could be a wiser way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Perhaps you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. With this in mind, you want to find a loan higher than the balance remaining on your present mortgage loan.With this goal, you'll want However, if your interest rate is high now and you have held it for quite a few years, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate other debt? Yes you can! If you have enough home equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while building up your equity quicker? If this is your wish, the refinance loan can switch you to a loan program with a shorter term, for example: a 15 year loan. Your payments will probably be more than they were with your long-term loan, but the pay-off is: that you will pay substantially less interest and can build up equity quicker. Conversely, if your existing longer term loan has a small remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 8327302000. We are here for you.
Want to know more about refinancing? Give us a call: 8327302000.