Refinancing: Which Option is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than borrowers! Contact us at 7186399500 and we will match you with the refinance program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even if interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great loan option. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a low initial rate may be the best way to bring down your monthly payment.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your house needs updating; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. Then you need to find a loan above the balance remaining of your current mortgage loan.Then you'll You'll be looking for a loan for more than the remaining balance of your present mortgage in this case. However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to achieve your goals without making your mortgage payments increase.
Consolidating Your Debt
Perhaps you'd like to cash out some equity in your home (cash out) to use toward other debt. If you hold any debt with higher interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? In that case, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your monthly payments will likely be more than with a long-term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. Conversely, if your existing longer term loan has a small remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 7186399500. We are here to help you reach your goals!
Curious about refinancing? Call us: 7186399500.