Which Refinancing Loan Program is Right for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at 3038627760 and we can help you qualify for the best refinance loan for your financial situation. In order to review your options, you'll need to consider what you want to achieve with your refinance.
Making Your Payments Lower
Are achieving lower mortgage payments and a better rate your main refinance goals? Then a low, fixed rate loan may be the ideal loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a wise idea if you aren't expecting a move within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? Your house needs updating; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to get a loan above the remaining balance of your present mortgage loan.With this goal, you want to qualify for a loan for a higher amount than the remaining balance on your current mortgage loan. However, if your loan interest rate is high now and you've held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Perhaps you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you hold any debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Do you hope to build up home equity more quickly, and pay off your mortgage sooner? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, such as a 15 year loan. The payments will probably be more than they were with a longer term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. However, if you have held your existing 30 year mortgage for a number of years and the loan balance is somewhat low, you might be do this without increasing your mortgage payment — you may even be able to save! To help you determine your options and the numerous benefits in refinancing, please call us at 3038627760. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call: 3038627760.