Which Refinancing Option is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than applicants! Call us at 8165258000 and we will match you with the refinance loan program that best fits you. surveying your options, you should think about what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are getting better monthly payments and a lower rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you plan to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a initial low payment could be a wiser way to reduce your payments if you expect to move within the near future.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you need to get a loan higher than the balance remaining of your existing mortgage.With this goal, you'll want to qualify for a loan for a higher amount than the balance remaining on your present mortgage loan. If you've had your current mortgage for a number of years and/or have a mortgage loan with a high interest rate, you may be able to do this without making your monthly payment bigger.
Perhaps you hope to cash out some of the equity (cash out) to use toward other debt. If you have built up some home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash every month.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. The monthly payments will likely be higher than they were with your long-term loan, but in exchange, you will pay substantially less interest and can build up equity quicker. But, you could be able to make the change without a higher monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is small. You could even pay less! To help you understand your options and the many benefits of refinancing, please call us at 8165258000. We would love to help you reach your goals!
Want to know more about refinancing? Call us at 8165258000.
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