Choosing a Refinancing Option
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than borrowers! Call us at 7068605514 and we can match you with the loan program that fits you best. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particulary good option for you. However, an ARM with a initial low payment may be a smarter way to lower your payments if you expect to move within the near future.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Perhaps you need to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you'll need to find a loan above the remaining balance on your current mortgage loan.Then you will need You might not increase your mortgage payemnt, however, if you've had your current mortgage for a long time, and/or your loan interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage loan off sooner? Then, you'll want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your monthly payments will generally be higher than they were. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 7068605514. We are here to help you reach your goals!
Curious about refinancing? Call us at 7068605514.