Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than applicants! We can guide you to choose the refinance program that will fit your needs the best. Contact us at (816) 525-8000 & (81 to get started. In the interest of looking at your options, you need to consider your goals for your refinance.
Making Your Payments Lower
Are achieving reduced payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. This can be especially a wise idea if you aren't expecting a move within the next 5 years or so. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to find a loan higher than the remaining balance on your present mortgage loan.In this case, you'll want to qualify for a loan for a bigger amount than the balance remaining on your current mortgage loan. You may not have an increase in your mortgage payemnt, though, if you have had your current mortgage for a long time, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the home equity (cash out) to put toward other debt. If you own any debt with high interest (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you planning to fatten your home equity faster, and pay off your mortgage loan sooner? Then, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Although your mortgage payments will usually be more, you will save on interest; so your home equity will build up faster. On the other hand, if your current long-term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at (816) 525-8000 & (81. We are here for you.
Want to know more about refinancing? Call us at (816) 525-8000 & (81.
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