Choosing a Refinancing Option
Although it seems like it sometimes, there aren't as many refinance loan programs as there are applicants! Call us at 3038627760 and we can match you with the loan program that fits you best. There are several things to have in mind as you review your options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you set the low interest rate for the life of your loan. This kind of loan can be especially a good option if you don't plan to move within the next 5 years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower payments.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll want to find a loan above the remaining balance on your existing mortgage loan.With this goal, you want to qualify for a loan program for a bigger amount than the balance remaining on your current mortgage loan. If you've had your current mortgage for a number of years and/or have a loan with high interest, you may be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate other debt? Good idea! If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars monthly.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and pay off your mortgage sooner? In that case, you need to look into refinancing to a short term mortgage - like a fifteen-year loan. Your monthly payments will likely be higher than with the longer term mortgage, but the pay-off is: you will pay substantially less interest and can build up equity quicker. But, you may be able to make the change without a higher monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at 3038627760. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: 3038627760.