Refinancing: Which Loan Program is for You?

Although it seems like it sometimes, there aren't as many loan options as there are borrowers! Contact us at 3172889434 and we can work with you to qualify you for the perfect refinance loan to fit your financial situation. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, the best option may be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Cashing Out

Are you wanting to cash out some of your home equity with your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. In this case, you will need to find a loan for more than the balance remaining on your existing mortgage.Then you will want to qualify for a loan program for a bigger number than the remaining balance on your existing mortgage loan. You might not increase your mortgage payemnt, however, if you've had your current mortgage for a while, and/or your loan interest rate is high.

Consolidating Your Debt

Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have enough home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.

Paying it off Faster

Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. The mortgage payments will likely be higher than with your long-term mortgage loan, but in exchange, you will pay considerably less interest and will build up equity more quickly. Conversely, if your current long-term mortgage has a small remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 3172889434. We are here for you.

Want to know more about refinancing your home? Call us: 3172889434.

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