Choosing a Refinancing Loan
When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! Contact us at 866-300-1550 and we will match you with the refinance program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
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 option for you. Maybe you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low interest rate for the life of your mortgage. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a good option. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you see yourself moving within the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? Your home needs improvements; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. In this case, you'll need to find a loan above the remaining balance of your existing mortgage.Then you'll You will be looking for a loan for more than the current balance of your current home loan in this case. You may not increase your monthly payemnt, though, if you have had your existing loan for a long time, and/or your interest rate is high.
Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have built up some home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of money each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your equity quicker? If this is your plan, the refinance loan can switch you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity faster, although your payments will generally be more than they were. Conversely, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at 866-300-1550. We are here to help you reach your goals!
Curious about refinancing your home? Call us at 866-300-1550.