Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than applicants! Call us at (888) 299-4585 and we can help you qualify for the right refinance program for your situation. There are some general things to have in mind as you look at your options.
Making Your Payments Lower
Are getting lower monthly payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a 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 term of the mortgage, even when interest rates rise. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. On the other hand, if you do see yourself selling your home within several years, an ARM with a small initial rate might be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you planning to cash out some of your home equity in your refinance? Your house needs new carpet; your son has gone to college and needs tuition money; or you have a special family vacation planned. In this case, you'll want to look for a loan above the balance remaining of your existing mortgage loan.So you want You may not increase your mortgage payemnt, however, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you'd like to pull out a portion of the equity (cash out) to put toward other debt. If you have a fair amount of equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might help save you a lot of money each month.
Switching to a Shorter Term Loan
Are you wanting to fatten your home equity faster, and pay your mortgage off more quickly? If this is your plan, the refinance mortgage can change you to a mortgage loan program with a short, for example: a 15 year loan. Your mortgage payments will likely be more than they were with a longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your current long-term mortgage has a small remaining balance, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (888) 299-4585. We would love to help you reach your goals!
Curious about refinancing? Give us a call at (888) 299-4585.