Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. Contact us at (800) 299-0270 and we can work with you to qualify you for the perfect refinance loan program to fit your financial needs. There are several questions to ask yourself as you review the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a small initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? It could be you want to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. So you want to find a loan higher than the balance remaining on your existing mortgage loan.So you will need You may not have an increase in your monthly payemnt, however, if you've had your current loan for a long time, and/or your interest rate is high.
Do you want to pull out some of your home equity to consolidate other debt? Good idea! If you have the equity in your home for it, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars per month.
Building up Equity Faster
Do you hope to build up home equity quicker, and have your mortgage paid off sooner? If this is your hope, your refinance mortgage can move you to a mortgage loan program with a short, for example: a 15 year loan. Although your mortgage payments will likely be more, you can save on interest; so your equity will rise up faster. But, you may be able to switch without much increase in your monthly payment if your long term mortgage was closed a while back, and the balance remaining is somewhat low. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please call us at (800) 299-0270. We would love to help you reach your goals!
Curious about refinancing? Call us: (800) 299-0270.