Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 4078987559 and we will match you with the refinance loan program that best fits you. In order to review your choices, you can consider what you want to achieve with your refinance.
Lowering Your Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? If so, the best option might be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can especially be a wise choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Maybe you want to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. So you need to find a loan for more than the balance remaining of your present mortgage loan.In this case, you'll need If you've had your existing mortgage loan for a long time and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have enough home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your monthly payments will generally be higher than you were paying. But, you may be able to make the change without much increase in your monthly payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 4078987559. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at 4078987559.