Which Refinancing Program is Right for You?
The huge number of refinance options available can be overwhelming. We can help you select the refinance loan program that can fit your needs the best. Contact us at 3038627760 to get started. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the term of your loan. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate might be the ideal way to bring down your monthly payment.
Is your refinance goal primarily to "cash out" some home equity? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. In this case, you want to get a loan for more than the remaining balance on your current mortgage.In that case, you'll want to need to find a loan program for a higher number than the balance remaining on your current mortgage loan. You might not increase your monthly payemnt, though, if you've had your current loan for a long time, and/or your interest rate is high.
Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have built up some equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Building up Equity More Quickly
Do you hope to build up equity quicker, and have your mortgage paid off sooner? In that case, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year loan. Your payments will likely be more than they were with your longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. However, if you have held your existing thirty-year mortgage loan for a long time and the loan balance is somewhat low, you could be able to do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please call us at 3038627760. We would love to help you reach your goals!
Curious about refinancing? Call us: 3038627760.