Refinancing Your Mortgage

Choosing a Refinancing Program
Don't get overwhelmed with all the options available to you, our expert home loan specialists can guide you in choosing the right loan program that fits your financial needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.

Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. Lowering your interest rate can also improve your monthly cash flow. An ARM (Adjustable-Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the term of your mortgage. A fixed-rate mortgage can be especially a wise choice if you do not plan to sell your home within the next five years. However, an ARM with a low initial payment may be a smarter way to reduce your mortgage payments if you plan on moving in the next few years. 

Refinancing To Cash Out
A cash-out refinance replaces an existing mortgage with a new loan balance, sometimes with more favorable terms than the current loan. Is your refinance goal mainly to "cash out" some home equity? Your home equity can be an excellent source of funds in some situations, such as financing home improvements, or take care of your college kid's tuition.

Consolidating Debt
Maybe you want to pull out some of the equity (cash out) to put toward other debt. If you own any debt with high interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through a cash-out refinance, if you have the home equity built up to make it work.

Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while increasing your equity faster? In that case, you will need to look into refinancing to a short-term mortgage loan - for example, a fifteen-year mortgage program. Even though your monthly payment amount will probably be increased, you can save on interest; so, your equity will build up faster. On the other hand, if your current long-term mortgage loan has a low remaining balance, and was closed several years ago, you may even be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please use the link below or call us at (702) 730-2085. We are here to help you reach your goals!