Refinancing: Which Option is for You?
Even though it may seem like it at times, there are not as many refinance options as there are applicants! We can help you locate the refinance program that will fit your situation the best. Call us at 3172889434 to get things started. There are some general questions to ask yourself while you consider your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even when interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a great option. On the other hand, if you do see yourself moving before too long, an ARM with a low initial rate might be the best way to bring down your monthly payment.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Your house needs improvements; your daughter has been accepted to University and needs tuition money; or you have a special family vacation planned. Then you will need to get a loan for more than the remaining balance of your current mortgage.In that case, you You'll want to qualify for a loan for a bigger amount than the current balance on your current mortgage in this case. You might not have an increase in your monthly payemnt, though, if you have had your existing loan for a number of years, and/or your loan interest rate is high.
Do you want to cash out some of your equity to consolidate other debt? Good plan! If you have enough equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a lot of money each month.
Paying it off Faster
Are you dreaming of paying your loan off more quickly, while building up your home equity more quickly? If this is your hope, the refinance can change you to a mortgage program with a short, such as a 15 year loan. Even though your mortgage payment amount will probably be increased, you can be paying less interest; so your equity will rise up faster. However, if you've had your existing thirty-year mortgage loan for a long time and the loan balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please call us at 3172889434. We are here for you.
Want to know more about refinancing? Call us at 3172889434.