Refinancing: Which Option is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than borrowers! Contact us at 8327302000 and we can match you with the refinance loan program that is ideal for you. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, your best choice might be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage loan, even when interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll need to look for a loan above the balance remaining of your present mortgage loan.Then you will need If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Perhaps you want to pull out a portion of the home equity (cash out) to use toward other debt. If you hold any debt with high interest (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Do you hope to build up home equity quicker, and have your mortgage paid off faster? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. Even though your monthly payment amount will probably be increased, you can be paying less interest; so your equity amount will build up faster. But, you could be able to make the change without a bigger monthly payment if your longer term loan was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please contact us at 8327302000. We are here for you.
Want to know more about refinancing? Give us a call: 8327302000.