Selecting a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. Contact us at (888) 299-4585 and we can match you with the loan program that best fits you. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are getting better mortgage payments and a lower rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan could be a good option for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even when interest rates rise. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. However, an ARM with a initial low payment could be a smarter way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. So you'll want to look for a loan higher than the balance remaining on your present mortgage.With this goal, you'll want If you've had your current mortgage loan for quite a while and/or have a mortgage with high interest, you might\could be able to do this without increasing your mortgage payment.
Maybe you want to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while beefing up your equity faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will usually be higher than you were paying. However, if you have had your current 30-year mortgage for a number of years and the loan balance is rather low, you might be able to do this without increasing your mortgage payment — you may even be able to save! To help you understand your options and the many benefits of refinancing, please call us at (888) 299-4585. We are here for you.
Want to know more about refinancing? Give us a call at (888) 299-4585.