Selecting a Refinancing Program
There are an enormous number of refinancing programs available to borrowers. Contact us at 5626935048 and we can work with you to qualify you for the perfect refinance loan program for your situation. What are your goals for your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low rate for the term of your loan. This is particularly a wise choice if you aren't expecting a move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move in the next few years.
Are you refinancing primarily to pull out some home equity for an infusion of cash? Your house needs new carpet; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. Then you'll need to look for a loan higher than the balance remaining on your existing mortgage.In that case, you will want to need to get a loan for a bigger number than the remaining balance on your current mortgage. You might not increase your mortgage payemnt, though, if you've had your current loan for a long time, and/or your loan interest rate is high.
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you hold some debt with higher interest (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Do you hope to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing with a short-term loan, like a 15-year mortgage. Although your monthly payment amount will usually be increased, you will save on interest; so your equity amount will rise up faster. However, if you have had your current thirty year mortgage loan for a long time and the remaining balance is rather low, you may be able to do this without increasing your mortgage payment — you might even be able to save! To help you determine your options and the many benefits of refinancing, please call us at 5626935048. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 5626935048.