Choosing a Refinancing Program
There are an enormous number of refinancing programs available to borrowers. Call us at 866-300-1550 and we'll help you qualify for the perfect loan program for your situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are achieving better mortgage payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payment.
Are you refinancing primarily to "cash out" some home equity? Your house needs new carpet; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. So you'll need to find a loan above the remaining balance on your current mortgage.With this goal, you will want to qualify for a loan program for a bigger number than the balance remaining on your existing mortgage loan. If you've had your current mortgage loan for a number of years and/or have a mortgage loan with a high interest rate, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Great plan! If you have any higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.
Paying it off Sooner
Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your monthly payments will usually be higher than you have been paying. On the other hand, if your existing long-term mortgage has a small balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at 866-300-1550. We are here for you.
Want to know more about refinancing? Call us: 866-300-1550.