Choosing a Refinancing Option
Even though it seems like it at times, there aren't as many loan options as there are borrowers! We can guide you to select the refinance loan program that will fit your needs the best. Call us at 5137966020 to begin the process. surveying your choices, you'll need to consider what you want to achieve with your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be an especially good fit for you. However, an ARM with a low intitial payment could be a wiser way to lower your mortgage payments if you see yourself moving in the next few years.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you want to apply for a loan above the balance remaining on your present mortgage.Then you'll want to find a loan for a higher amount than the remaining balance on your existing mortgage loan. If you've had your existing mortgage for a long time and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have built up some equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.
Switching to a Shorter Term Loan
Do you want to build up home equity more quickly, and have your mortgage paid off more quickly? If this is your goal, the refinance loan can move you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your equity faster, although your monthly payments will usually be more than they were. But, you might be able to switch without a bigger monthly payment if your longer term mortgage was closed a while back, and the remaining balance is small. You may even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at 5137966020. We are here for you.
Curious about refinancing? Call us: 5137966020.