Selecting a Refinancing Option

The number of refinance options available can be overwhelming. Call us at 3172889434 and we can match you with the refinance loan program that is ideal for you. surveying your choices, you will need to determine your goals for your refinance.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise choice. However, an ARM with a initial low payment could be a wiser way to reduce your payments if you expect to move within the near future.

Cashing Out

Is "cashing out" your primary reason for refinancing? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you will need to apply for a loan higher than the remaining balance of your existing mortgage loan.In that case, you want to qualify for a loan program for a bigger amount than the balance remaining on your current mortgage. You might not increase your monthly payemnt, though, if you have had your current loan for a long time, and/or your loan interest rate is high.

Consolidating Debt

Perhaps you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you have built up some home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.

Paying it off Faster

Are you hoping to fatten your equity faster, and get your mortgage paid off sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Your payments will likely be more than with your longer term loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. However, if you've had your existing 30 year mortgage loan for a number of years and the loan balance is relatively low, you may be do this without increasing your monthly mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 3172889434. We are here for you.

Want to know more about refinancing? Give us a call at 3172889434.

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