Which Refinancing Option is Best for You?
Even though it seems like it sometimes, there aren't as many loan options as there are applicants! Call us at 5623200510 and we'll work with you to qualify you for the best loan program for your financial situation. There are some general questions to ask yourself while you review your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike 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 expecting to live in your home for about five more years, a loan with a fixed rate may be an especially good option for you. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you see yourself moving in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. With this in mind, you'll want to find a loan for more than the remaining balance of your present mortgage.Then you need If you've had your existing mortgage for a long time and/or have a mortgage loan with a high interest rate, you may be able to do this without increasing your monthly payment.
Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have some higher interest debts (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay your mortgage loan off more quickly? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will usually be higher than you were paying. But, you may be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 5623200510. We are here to help you reach your goals!
Curious about refinancing? Call us at 5623200510.