Selecting a Refinancing Loan
There aren't as many refinance loan options as there are borrowers, but at times it feels like it! Contact us at 866-300-1550 and we can match you with the loan program that best fits you. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving reduced payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a loan with a fixed rate may be a particulary good option for you. However, if you do see yourself selling your home before too long, an ARM mortgage with a low initial rate could be the best way to reduce your monthly payments.
Are you refinancing mainly to pull out some home equity for an infusion of cash? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. Then you want to get a loan for more than the remaining balance on your existing mortgage.In this case, you need However, if your mortgage rate is high now and you have held it for quite a few years, you may be able to achieve your goals without making your monthly payments rise.
Do you want to cash out a portion of your home equity to consolidate additional debt? Excellent idea! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? Then, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. The payments will likely be higher than with a long-term mortgage, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. Conversely, if your existing long-term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at 866-300-1550. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: 866-300-1550.