Refinancing: Which Option is for You?
The number of refinance options available to borrowers can be overwhelming. Call us at 4078987559 and we'll work with you to qualify you for the right loan program to fit your financial needs. There are some general things to have in mind while you look at the choices.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan could be a wise option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good option. However, an ARM with a initial low payment may be a better way to reduce your monthly payments if you plan on moving in the next few years.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you'll need to get a loan above the remaining balance of your present mortgage loan.In that case, you'll need However, if your loan interest rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your monthly payments rise.
Do you have other debt, perhaps with higher interest, that you want to consolidate? If you have some debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you planning to fatten up your home equity faster, and pay off your mortgage sooner? If this is your hope, the refinance can change you to a mortgage program with a shorter term, for example: a 15 year loan. Although your monthly payment amount will probably be more, you will be paying less interest; so your home equity will rise up faster. Conversely, if your existing long-term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at 4078987559. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at 4078987559.