Refinancing: Which Program is for You?
Even though it seems like it at times, there aren't as many refinance loan options as there are applicants! Call us at (888) 299-4585 and we can match you with the loan program that is best for you. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great loan option. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a low initial rate may be the ideal way to lower your monthly payments.
Is "cashing out" your main reason for your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. Then you will want to look for a loan above the balance remaining on your existing mortgage loan.In that case, you'll You will be looking for a loan for more than the balance remaining with your existing mortgage loan in that case. If you've had your current mortgage loan for a long time and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate other debt? Excellent idea! If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of money every month.
Building up Equity Faster
Are you planning to fatten up your home equity faster, and pay off your mortgage more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage. The payments will probably be more than with a long-term mortgage loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. However, if you have held your current thirty year mortgage for a number of years and the loan balance is relatively low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please contact us at (888) 299-4585. We are here for you.
Want to know more about refinancing your home? Give us a call: (888) 299-4585.