Which Refinancing Loan Program is Best for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than applicants! We can help you select the refinance program that can fit your needs the best. Call us at (816) 525-8000 & (81 to get things started. There are some general things to keep in mind while you review your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. 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 great choice. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? It could be you need to make home improvements, pay your child's college tuition bill, or take a cruise. So you need to get a loan for more than the balance remaining on your existing mortgage loan.So you'll want to find a loan for a bigger number than the remaining balance on your current mortgage. However, if your interest rate is currently high and you have held it for quite a few years, you may be able to reach your goals without making your mortgage payments rise.
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you own some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and have your mortgage paid off sooner? Consider refinancing to a shorterterm loan, like a 15-year mortgage. Even though your mortgage payment amount will usually be more, you will be paying less interest; so your equity will build up faster. On the other hand, if your current longer term loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (816) 525-8000 & (81. We are here for you.
Want to know more about refinancing your home? Call us: (816) 525-8000 & (81.
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