Refinancing: Which Option is for You?
Even though it may seem like it at times, there are not as many refinance loan options as there are borrowers! We can help you select the loan program that can fit your financial situation the best. Contact us at 4078987559 to get things started. In order to review your options, you can think about your goals for the refinance.
Lowering Your Payments
Are achieving reduced monthly payments and an improved rate your main reasons for refinancing? If so, the best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a good option if you aren't expecting a move within the next five years or so. However, if you do see yourself moving before too long, an adjustable rate mortgage with a low initial rate could be the best way to bring down your monthly payments.
Are you refinancing primarily to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you need to get a loan for more than the remaining balance on your present mortgage.With this goal, you will need However, if your loan interest rate is currently high and you've had it for a long time, you may be able to achieve your goals without making your monthly payments bigger.
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have the home equity 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 may be able to save several hundred dollars each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while building up your home equity more quickly? If this is your wish, your refinance loan can switch you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity faster, although your monthly payments will generally be higher than they were. But, you might be able to switch without a higher monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please call us at 4078987559. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at 4078987559.