Selecting a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Contact us at 5626935048 and we will work with you to qualify you for the right loan program for your financial situation. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good option for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the term of your mortgage. This is especially a good choice if you don't think you will sell your home within the next five years or so. However, an ARM with a initial low payment may be a better way to reduce your payments if you see yourself moving in the near future.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your house needs improvements; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. In this case, you need to find a loan higher than the balance remaining on your existing mortgage loan.Then you will need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you want to pull out some home equity to consolidate additional debt? Good plan! If you have a fair amount of home equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might help save you a lot of money each month.
Getting a Shorter Term Loan
Do you want to build up home equity more quickly, and have your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Even though your mortgage payments will likely be more, you will save on interest; so your equity amount will rise up faster. However, if you've held your current 30 year mortgage for a long time and the remaining balance is rather low, you may be able to do this without raising your mortgage payment — you could even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at 5626935048. We are here for you.
Want to know more about refinancing? Give us a call at 5626935048.