Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 4078987559 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are getting lower payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you are expecting to stay in your home for at least five more years, a fixed rate mortgage may be a particulary good fit for you. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a small initial rate may be the best way to reduce your monthly payment.
Is "cashing out" your main purpose for your refinance? Your home needs improvements; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to get a loan higher than the balance remaining of your present mortgage.Then you'll You'll want to find a loan for a bigger amount than the balance remaining of your current mortgage in that case. You may not increase your monthly payemnt, though, if you have had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have enough home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might help save you a lot of cash each month.
Building up Equity Faster
Are you wanting to fatten up your home equity faster, and get your mortgage paid off sooner? Consider refinancing to a shorterterm loan, like a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your payments will generally be more than they were. However, if you've had your current 30-year mortgage loan for a long time and the remaining balance is rather low, you could be do this without raising your monthly payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at 4078987559. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: 4078987559.