Choosing a Refinancing Option
There are not as many loan program choices as there are borrowers, but sometimes it seems like it! We can help you select the loan program that can fit your financial situation the best. Call us at (888) 299-4585 to begin the process. In the interest of looking at your choices, you should determine your goals for the refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal choice for you. Maybe you are now in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you expect to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. However, if you do see yourself selling your home within the next few years, an ARM mortgage with a low initial rate might be the best way to lower your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll want to find a loan above the remaining balance of your current mortgage loan.With this goal, you will want You might not increase your mortgage payemnt, however, if you've had your current mortgage for a while, and/or your loan interest rate is high.
Maybe you hope to pull out a portion of the home equity (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Faster
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? If this is your wish, the refinance loan can move you to a mortgage loan program with a short, for example: a 15 year loan. Although your mortgage payments will probably be more, you will be paying less interest; so your equity amount will build up faster. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at (888) 299-4585. We are here for you.
Curious about refinancing? Give us a call: (888) 299-4585.