Refinancing: Which Program is for You?
Even though it seems like it at times, there are not as many refinance loan programs as there are borrowers! Call us at 5122791520 and we'll work with you to qualify you for the best loan program to fit your financial needs. There are some general things to have in mind while you consider your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. On the other hand, if you do see yourself moving within the next few years, an adjustable rate mortgage with a low initial rate could be the best way to bring down your monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? It could be you want to update your kitchen, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you'll want to look for a loan higher than the balance remaining on your present mortgage loan.With this goal, you'll You will be looking for a loan for a higher amount than the current balance with your current home loan in this case. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with high interest, that you need to consolidate? If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.
Building up Equity More Quickly
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? Then, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity more quickly, although your payments will usually be more than they were. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at 5122791520. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 5122791520.