Refinancing: Which Option is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! We can guide you to locate the loan program that can fit your needs the best. Contact us at 866-300-1550 to get things started. There are several questions to ask yourself while you review the choices.
Lowering Your Payments
Are getting lower mortgage payments and an improved rate your main reasons for refinancing? If so, the best option might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This can be particularly a good option if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a low intitial payment could be a better way to lower your mortgage payments if you see yourself moving in the next few years.
Getting Out some Cash
Are you refinancing primarily to pull out some home equity for an infusion of cash? Your home needs updating; your son has gone to college and needs tuition; or you are planning a special vacation. Then you'll need to look for a loan higher than the remaining balance of your current mortgage loan.So you want If you've had your existing mortgage loan for a number of years and/or have a loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Maybe you'd like to cash out some equity (cash out) to use toward other debt. If you have a fair amount of home equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.
Building up Equity Faster
Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? If this is your plan, your refinance can switch you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity more quickly, although your monthly payments will generally be more than you have been paying. But, you might be able to make the change without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at 866-300-1550. We can help you reach your goals!
Curious about refinancing? Call us: 866-300-1550.