Refinancing: Which Loan Program is for You?
Although it may seem like it at times, there aren't as many loan programs as there are borrowers! Contact us at (816) 525-8000 and we will work with you to qualify you for the right refinance loan program for your financial situation. There are several things to have in mind while you look at your options.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a loan with a fixed rate may be a particulary good fit for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Maybe you want to update your kitchen, pay your child's college tuition bill, or take a cruise. Then you need to look for a loan for more than the balance remaining on your current mortgage.With this goal, you will You'll need to get a loan for a higher amount than the remaining balance of your current mortgage in this case. If you've had your existing mortgage for a long time and/or have a mortgage with a high interest rate, you may be able to do this without making your mortgage payment higher.
Perhaps you want to pull out some equity (cash out) to put toward other debt. If you hold some debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Paying it off Faster
Are you hoping to fatten up your equity faster, and pay your mortgage off more quickly? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will likely be higher than you have been paying. But, you may be able to switch without much increase in your monthly mortgage payment if your long 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 many benefits in refinancing, please contact us at (816) 525-8000. We are here for you.
Curious about refinancing? Give us a call at (816) 525-8000.
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