Choosing a Refinancing Option
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The number of refinance options available can be overwhelming. We can help you locate the refinance program that will fit your financial situation the best. Contact us at to get things started. There are several things to bear in mind while you review your options.
Lowering Your Payments
Are achieving better monthly payments and an improved rate your main refinance goals? If so, a good choice could be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. However, if you can see yourself moving before too long, an ARM with a low initial rate could be the best way to reduce your monthly payment. Due to refinancing, your total finance charges can be higher over the life of the loan.
Is "cashing out" your primary reason for refinancing? Your home needs improvements; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. Then you will need to find a loan above the balance remaining of your existing mortgage.Then you need However, if your interest rate is currently high and you have held it for a long time, you may be able to achieve your goals without an increase in your mortgage payment.
Perhaps you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you own any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your home equity quicker? If this is your goal, the refinance mortgage can change you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your monthly payments will generally be bigger than they were. However, if you've held your current thirty year loan for a long time and the loan balance is rather low, you may be able to do this without raising your monthly payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please contact us at
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