Which Refinancing Loan Program is Right for You?
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at (800) 299-0270 and we will match you with the refinance loan program that is best for you. There are some general questions to ask yourself as you consider the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right option for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low rate for the life of your loan. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise choice. However, if you can see yourself selling your home in the near future, an ARM with a low initial rate might be the best way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? It could be you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you need to get a loan higher than the balance remaining of your current mortgage.Then you will want However, if your mortgage rate is currently high and you've held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.
Do you want to pull out some of your home equity to consolidate additional debt? Great idea! If you own any debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while building up your home equity more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. Although your monthly payment amount will likely be more, you will save on interest; so your equity will rise up faster. On the other hand, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (800) 299-0270. We can help you reach your goals!
Want to know more about refinancing your home? Call us: (800) 299-0270.