Selecting a Refinancing Option
There are not as many refinance loan options as there are borrowers, but it feels like it at times! We can help you choose the refinance program that can fit your situation the best. Call us at (800) 299-0270 to get started. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, an ARM with a low intitial payment may be a smarter way to lower your payments if you plan on moving in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you need to find a loan for more than the remaining balance on your current mortgage loan.In this case, you will want to find a loan program for a higher amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage loan for a long time and/or have a mortgage whose interest rate is high, you might\could be able to do this without making your monthly payment bigger.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you have the home equity for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. Even though your monthly payment amount will probably be more, you can save on interest; so your home equity will rise up faster. Conversely, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at (800) 299-0270. We are here for you.
Curious about refinancing? Call us: (800) 299-0270.