Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! Contact us at (888) 299-4585 and we'll help you qualify for the perfect refinance loan program to fit your financial needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving better payments and a lower rate your main refinance goals? If so, the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low rate for the life of your loan. If you are expecting to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you plan to renovate your home. With this in mind, you'll need to apply for a loan higher than the balance remaining of your current mortgage.In this case, you will want However, if your interest rate is currently high and you have held it for a long time, you could be able to achieve your goals without making your monthly payments bigger.
Consolidating Your Debt
Maybe you hope to cash out some of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your budget each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your equity faster? If this is your wish, your refinance can switch you to a loan program with a shorter term, such as a 15 year loan. Your monthly payments will likely be higher than with the longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. However, if you have had your existing 30 year loan for a number of years and the loan balance is somewhat low, you might be able to do this without increasing your mortgage payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please call us at (888) 299-4585. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at (888) 299-4585.