Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! Call us at 3038627760 and we can work with you to qualify you for the best refinance loan to fit your financial situation. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the life of your loan. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a wise loan option. However, an ARM with a low intitial payment may be a smarter way to reduce your mortgage payments if you see yourself moving within the near future.
Are you wanting to cash out some of your home equity in your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you will want to find a loan for more than the balance remaining on your present mortgage.Then you will You'll want to apply for a loan for more than the balance remaining of your existing mortgage in this case. If you've had your current mortgage for a long time and/or have a mortgage with a high interest rate, you might\could be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. Although your mortgage payment amount will probably be increased, you will save on interest; so your equity amount will rise up faster. However, if you've held your existing 30-year mortgage for a long time and the loan balance is relatively low, you could be do this without increasing your monthly payment — you might even be able to save! To help you determine your options and the many benefits in refinancing, please call us at 3038627760. We are here for you.
Curious about refinancing? Give us a call: 3038627760.