Which Refinancing Program is Right for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at (888) 299-4585 and we will help you qualify for the perfect refinance loan to fit your situation. surveying your options, you should determine your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good choice may 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 as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be especially a good idea if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment could be a better way to lower your payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? It could be you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you need to find a loan for more than the remaining balance of your current mortgage loan.With this goal, you You'll need to find a loan for a bigger amount than the current balance of your existing mortgage in that case. However, if your loan interest rate is high now and you have held it for quite a few years, you may be able to reach your goals without making your monthly payments increase.
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have enough equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Switching to a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage faster? You should consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Your mortgage payments will probably be higher than they were with the long-term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (888) 299-4585. We are here for you.
Curious about refinancing your home? Give us a call: (888) 299-4585.