Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. Contact us at 3038627760 and we will match you with the refinance loan program that is best for you. What are your goals for your refinance loan? 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? Then the best option might be a low fixed-rate loan. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you planning to cash out some of your equity with your refinance? Your house needs new carpet; your son has been accepted to college and needs tuition; or you are planning a special vacation. Then you want to get a loan above the balance remaining on your existing mortgage loan.In this case, you will You'll want to find a loan for more than the current balance on your present mortgage loan in that case. If you've had your existing mortgage loan for a long time and/or have a mortgage loan with a high interest rate, you might\could be able to do this without making your monthly payment higher.
Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you have the equity in your home for it, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while building up your home equity quicker? Consider refinancing to a short-term loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, even though your mortgage 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 ago, and the remaining balance is somewhat low. You may even make it lower! 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!
Curious about refinancing your home? Call us at 3038627760.