Refinancing: Which Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Call us at 5626935048 and we'll work with you to qualify you for the best refinance loan to fit your financial situation. There are several things to have in mind as you consider your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good choice for you. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. This is especially a good choice if you don't plan to sell your home within the next 5 years or so. On the other hand, if you do see yourself selling your home in the near future, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Cashing Out
Is your refinance goal mainly to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you will need to find a loan higher than the remaining balance of your present mortgage loan.Then you will want to find a loan program for a higher number than the remaining balance on your current mortgage. You might not increase your mortgage payemnt, though, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have built up some equity, paying toward other debt with higher interest that 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
Do you hope to build up equity quicker, and have your mortgage paid off more quickly? If this is your wish, the refinance loan can change you to a mortgage loan program with a shorter term, like a 15 year loan. Your payments will likely be more than with the long-term mortgage, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. However, if you have had your existing thirty-year mortgage loan for a number of years and the remaining balance is relatively low, you may be do this without increasing your monthly payment — you might even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at 5626935048. We are here for you.
Curious about refinancing? Call us at 5626935048.