Refinancing: Which Option is for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! We can guide you to choose the loan program that can fit your needs the best. Call us at 4078987559 to begin the process. In the interest of looking at your choices, you'll need to list what you want to achieve with the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage, even when 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 good option. On the other hand, if you do see yourself moving in the near future, an ARM with a low initial rate might be the best way to reduce your monthly payments.
Is "cashing out" your main reason for your refinance? It could be you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you need to apply for a loan for more than the balance remaining on your present mortgage.So you will want However, if your mortgage rate is high now and you've held it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.
Perhaps you want to cash out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your budget each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? Then, you'll want to find out about refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payments will usually be more, you can save on interest; so your equity amount will build up faster. But, you might be able to make the change without a bigger monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is low. You may even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at 4078987559. We will help you reach your goals!
Curious about refinancing? Give us a call at 4078987559.