Which Refinancing Option is Right for You?
Even though it seems like it at times, there aren't as many refinance loan programs as there are applicants! Contact us at 8165258000 and we can match you with the refinance program that fits you best. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? Your home needs renovating; your daughter has gone to University and needs tuition; or you have a special family vacation planned. Then you want to find a loan higher than the balance remaining on your existing mortgage.With this goal, you will want However, if your loan interest rate is high now and you've had it for quite a few years, you may be able to achieve your goals without making your monthly payments bigger.
Maybe you hope to pull out some of the equity (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Getting a Shorter Term Loan
Do you hope to build up home equity more quickly, and pay off your mortgage faster? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. Your monthly payments will likely be more than they were with a longer term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. However, if you have held your current 30-year loan for a long time and the remaining balance is relatively low, you might be able to do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 8165258000. We are here for you.
Want to know more about refinancing your home? Give us a call: 8165258000.
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