Refinancing: Which Option is for You?
Although it may seem like it sometimes, there aren't as many refinance choices as there are borrowers! Contact us at 3038627760 and we will help you qualify for the perfect refinance loan program to fit your situation. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are getting better payments and a better rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. Then you'll need to get a loan for more than the balance remaining on your existing mortgage loan.In that case, you want to qualify for a loan program for a higher number than the balance remaining on your existing mortgage. You may not have an increase in your mortgage payemnt, though, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you have a fair amount of equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you wanting to fatten your home equity faster, and get your mortgage paid off more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. Even though your mortgage payments will usually be more, you will be paying less interest; so your equity will rise up faster. But, you might be able to switch without a bigger monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at 3038627760. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us: 3038627760.