Which Refinancing Option is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! Call us at 866-300-1550 and we'll work with you to qualify you for the right loan program to fit your financial situation. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
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. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up 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 loan. If you expect to live in your home for at least five more years, a fixed rate mortgage may be a particulary good option for you. However, an ARM with a low intitial payment may be a smarter way to reduce your mortgage payments if you see yourself moving in the near future.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will want to get a loan above the remaining balance of your existing mortgage loan.So you will need If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you want to pull out a portion of your equity to consolidate other debt? Great idea! If you have the home equity to make it work, taking care of 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 several hundred dollars in your budget each month.
Getting a Shorter Term Loan
Do you want to build up equity more quickly, and pay off your mortgage more quickly? Then, you need to look into refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will usually be higher than you were paying. On the other hand, if your existing longer term loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at 866-300-1550. We are here for you.
Curious about refinancing your home? Give us a call at 866-300-1550.