Refinancing: Which Program is for You?
Although it may seem like it at times, there aren't as many loan options as there are borrowers! We can help you choose the loan program that will fit your financial situation the best. Contact us at (800) 299-0270 to get things started. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are getting better monthly payments and a better rate your main refinance goals? Then a good option might be a low fixed-rate loan. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even as interest rates rise. This can be especially a good idea if you aren't planning a move within the next five years or so. On the other hand, if you do see yourself moving within the next few years, an adjustable rate mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you want to apply for a loan higher than the balance remaining of your existing mortgage.With this goal, you want to need to get a loan for a bigger amount than the balance remaining on your existing mortgage. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Maybe you hope to pull out a portion of the equity in your home (cash out) to use toward other debt. If you own any debt with steep interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and get your mortgage paid off sooner? Then, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, even though your monthly payments will likely be higher than they were. However, if you have held your current 30-year mortgage loan for a long time and the remaining balance is relatively low, you could be do this without increasing your monthly payment — you may even be able to save! To help you determine your options and the multiple benefits in refinancing, please call us at (800) 299-0270. We are here for you.
Want to know more about refinancing? Give us a call: (800) 299-0270.