Which Refinancing Loan Program is Right for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 4078987559 and we will match you with the loan program that best fits you. There are some general questions to ask yourself while you consider your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a good option for you. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate loan may be a particulary good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Are you hoping to cash out some of your home equity in your refinance? It could be you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will want to find a loan higher than the balance remaining of your present mortgage.Then you'll want However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.
Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Switching to a Shorter Term Loan
Do you hope to build up home equity more quickly, and have your mortgage paid off more quickly? Then, you need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. Although your monthly payment amount will likely be more, you will save on interest; so your equity will rise up faster. Conversely, if your existing longer term loan has a low balance remaining, and was closed a while ago, you may be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at 4078987559. We would love to help you reach your goals!
Want to know more about refinancing? Call us at 4078987559.