Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Call us at 3038627760 and we will help you qualify for the right refinance program for your needs. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good choice may be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the life of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Are you planning to cash out some of your home equity with your refinance? Perhaps you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. In this case, you'll need to get a loan above the balance remaining of your present mortgage loan.Then you need If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out some home equity to consolidate other debt? Yes you can! If you have built up some equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) might help save you a lot of cash every month.
Paying it off Faster
Do you need to build up home equity quicker, and pay off your mortgage faster? You should consider refinancing to a short-term loan, often a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your mortgage payments will usually be higher than you have been paying. But, you might be able to make the change without a higher monthly payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at 3038627760. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 3038627760.