Selecting a Refinancing Loan
There aren't as many loan options as there are borrowers, but it seems like it at times! Call us at (800) 299-0270 and we can help you qualify for the best refinance loan to fit your financial situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better monthly payments and an improved rate your main refinance goals? Then a good choice may be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. However, if you can see yourself selling your home in the near future, an ARM mortgage with a small initial rate may be the best way to reduce your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you will want to find a loan higher than the balance remaining on your existing mortgage.So you will You will want to find a loan for more than the current balance on your current mortgage in this case. You might not have an increase in your mortgage payemnt, however, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, perhaps with high interest, that you want to consolidate? If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars each month.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay off your mortgage loan more quickly? If this is your goal, the refinance loan can switch you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity faster, even though your payments will generally be more than you were paying. However, if you've held your existing 30 year mortgage loan for a long time and the loan balance is relatively low, you could be do this without increasing your monthly mortgage payment — you may even be able to save! To help you determine your options and the many benefits in refinancing, please contact us at (800) 299-0270. We are here for you.
Curious about refinancing? Give us a call at (800) 299-0270.