Which Refinancing Option is Right for You?
There aren't as many refinance loan options as there are borrowers, but at times it seems like it! Contact us at 866-300-1550 and we'll work with you to qualify you for the best refinance loan program to fit your financial situation. surveying your options, you'll need to list your goals for your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice may be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low interest rate for the term of your mortgage. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Maybe you want to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. In this case, you will want to qualify for a loan for more than the balance remaining of your current mortgage loan.Then you'll You'll want to get a loan for more than the remaining balance of your current home loan in that case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate additional debt? Yes you can! If you have built up some equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and pay off your mortgage sooner? In that case, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will usually be more than they were. Conversely, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at 866-300-1550. We are here for you.
Want to know more about refinancing your home? Call us: 866-300-1550.