Which Refinancing Program is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! Call us at (800) 299-0270 and we will match you with the refinance loan program that fits you best. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage, even if interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good fit for you. However, an ARM with a low intitial payment may be a smarter way to reduce your mortgage payments if you expect to move in the near future.
Is "cashing out" your primary purpose for refinancing? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you need to get a loan above the balance remaining on your existing mortgage.With this goal, you'll want to find a loan for a higher number than the remaining balance on your current mortgage. However, if your mortgage rate is high now and you've had it for a long time, you could be able to reach your goals without making your monthly payments rise.
Consolidating Your Debt
Perhaps you'd like to cash out some of the home equity (cash out) to put toward other debt. If you have enough home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Paying it off Faster
Are you planning to fatten your equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be bigger than they were. However, if you have held your existing 30-year mortgage loan for a long time and the remaining balance is relatively low, you could be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you understand your options and the numerous benefits of refinancing, please call us at (800) 299-0270. We are here for you.
Curious about refinancing? Give us a call: (800) 299-0270.