Which Refinancing Loan Program is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than applicants! We can help you select the refinance loan program that will fit your needs the best. Call us at 7072522700 to begin the process. In the interest of looking at your choices, you need to consider what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed rate mortgage may be an especially good fit for you. However, an ARM with a initial low payment could be a smarter way to lower your payments if you expect to move in the near future.
Is your refinance goal primarily to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you want to qualify for a loan higher than the balance remaining on your current mortgage.In this case, you You'll be looking for a loan for more than the balance remaining on your present mortgage loan in this case. You may not have an increase in your mortgage payemnt, though, if you've had your existing loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you hold some debt with steep interest (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your home equity more quickly? In that case, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be more than they were. But, you may be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at 7072522700. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at 7072522700.