Which Refinancing Option is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at (888) 299-4585 and we'll help you qualify for the perfect refinance loan to fit your situation. There are some general things to keep in mind as you consider your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed rate loan may be an especially good choice for you. However, an ARM with a initial low payment could be a wiser way to reduce your monthly payments if you expect to move within the near future.
Are you refinancing primarily to "cash out" some home equity? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you'll need to find a loan higher than the balance remaining on your current mortgage loan.Then you want You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars in your budget each month.
Switching to a Shorter Term Loan
Do you want to build up equity quicker, and have your mortgage paid off sooner? If this is your hope, your refinance loan can switch you to a loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your payments will likely be higher than you have been paying. However, if you've held your existing 30-year mortgage loan for a long time and the loan balance is rather low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in 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 at (888) 299-4585.