Which Refinancing Program is Best for You?
Even though it seems like it sometimes, there are not as many loan options as there are borrowers! Contact us at 6784672330 and we will work with you to qualify you for the best refinance loan for your situation. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low rate for the term of your mortgage. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. So you will want to apply for a loan higher than the balance remaining on your existing mortgage loan.Then you need You might not have an increase in your monthly payemnt, however, if you have had your existing loan for a number of years, and/or your loan interest rate is high.
Debt Consolidation
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have enough home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.
Paying it off Faster
Do you need to build up equity quicker, and pay off your mortgage more quickly? If this is your goal, the refinance can move you to a mortgage program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be more than with your longer term loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. However, if you have had your existing thirty year loan for a long time and the remaining balance is somewhat low, you could be do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please contact us at 6784672330. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 6784672330.