Refinancing: Which Option is for You?
There are an enormous number of refinancing options available to borrowers. Call us at 3038627760 and we will match you with the refinance loan program that best fits you. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are achieving better monthly payments and a lower rate your main reasons for refinancing? If so, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the term of your loan. This kind of loan can be especially a good choice if you aren't planning a move within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you need to get a loan above the balance remaining on your current mortgage loan.So you You'll need to find a loan for more than the current balance with your existing mortgage in that case. However, if your loan interest rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without making your mortgage payments rise.
Do you want to cash out some of your equity to consolidate additional debt? Good plan! 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) may be able to save you a lot of cash every month.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while building up your equity quicker? Then, you need to look into refinancing to a short term mortgage - such as a fifteen-year loan. You will be paying less interest and increasing your equity faster, even though your mortgage payments will likely be more than you were paying. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while ago, and the balance remaining is small. 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 for you.
Want to know more about refinancing? Give us a call at 3038627760.