Which Refinancing Loan Program is Right for You?
There are not as many loan program choices as there are borrowers, but it seems like it at times! Contact us at 3038627760 and we can match you with the refinance program that fits you best. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, your best choice could be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good idea if you don't plan to sell your home within the next five years or so. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a small initial rate might be the best way to reduce your monthly payments.
Are you wanting to cash out some of your home equity in your refinance? Maybe you want to update your kitchen, take care of your college kid's tuition, or take your dream vacation. In this case, you'll want to find a loan for more than the remaining balance of your existing mortgage loan.In this case, you will want You might not have an increase in your monthly payemnt, though, if you've had your current mortgage for a while, and/or your loan interest rate is high.
Do you want to pull out some home equity to consolidate other debt? Great idea! If you have the home equity to make it work, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars a month.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and pay off your mortgage more quickly? If this is your hope, the refinance loan can switch you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, even though your monthly payments will generally be bigger than you have been paying. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is low. You may even make it lower! To help you figure out your options and the numerous benefits of refinancing, please call us at 3038627760. We would love to help you reach your goals!
Curious about refinancing? Call us: 3038627760.