Which Refinancing Option is Best for You?
Even though it may seem like it at times, there aren't as many loan programs as there are applicants! Contact us at 5623200510 and we'll work with you to qualify you for the best refinance program for your needs. There are several questions to ask yourself while you look at your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a good option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage, even as interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? It could be you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you'll need to find a loan higher than the balance remaining on your present mortgage loan.So you'll want to find a loan for a higher number than the balance remaining on your existing mortgage. You may not increase your monthly payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Maybe you want to cash out some equity (cash out) to use toward other debt. If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.
Building up Equity More Quickly
Are you hoping to fatten up your home equity faster, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. The mortgage payments will probably be higher than with your long-term mortgage loan, but in exchange, you will pay considerably less interest and will build up equity quicker. Conversely, if your current longer term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at 5623200510. We are here to help you reach your goals!
Curious about refinancing? Give us a call: 5623200510.