Which Refinancing Loan Program is Right for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at 7027302085 and we will help you qualify for the best refinance program to fit your needs. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even when interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you'll need to find a loan above the balance remaining on your current mortgage loan.So you'll want However, if your loan interest rate is currently high and you've had it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Good idea! If you have enough home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Do you want to build up equity more quickly, and pay off your mortgage more quickly? Then, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will likely be higher than they were. However, if you have had your current 30-year mortgage loan for a long time and the loan balance is rather low, you may be able to do this without raising your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please call us at 7027302085. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 7027302085.