Refinancing: Which Program is for You?
There are a huge number of refinancing options available to borrowers. Call us at (816) 525-8000 & (81 and we can match you with the loan program that best fits you. There are several things to have in mind while you look at the choices.
Lowering Your Payments
Are getting better mortgage payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in the low interest rate for the term of your mortgage. This is particularly a good idea if you don't plan to sell your home within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to lower your monthly payments if you see yourself moving in the next few years.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Your house needs new carpet; your son has been accepted to University and needs tuition; or you have a special family vacation planned. So you'll want to qualify for a loan for more than the balance remaining on your present mortgage.With this goal, you You'll want to qualify for a loan for more than the balance remaining with your current home loan in this case. You may not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your monthly budget.
Switching to a Shorter Term Loan
Do you plan to build up home equity quicker, and have your mortgage paid off faster? If this is your goal, the refinance loan can move you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity faster, even though your payments will likely be more than you have been paying. On the other hand, if your current long-term mortgage has a small balance remaining, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at (816) 525-8000 & (81. We are here for you.
Want to know more about refinancing? Give us a call: (816) 525-8000 & (81.
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