Which Refinancing Loan Program is Best for You?
There aren't as many loan options as there are borrowers, but sometimes it feels like it! Contact us at 7072522700 and we'll work with you to qualify you for the right refinance loan for your financial situation. There are several things to have in mind while you look at the options.
Making Your Payments Lower
Are achieving reduced monthly payments and an improved rate your main reasons for refinancing? Then your best choice could be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low rate for the term of your loan. If you are planning to live in your home for about five more years, a fixed rate mortgage may be an especially good option for you. However, an ARM with a low intitial payment could be a smarter way to reduce your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. Then you will need to look for a loan above the balance remaining of your current mortgage.With this goal, you need However, if your interest rate is high now and you've held it for a long time, you could be able to reach your goals without making your mortgage payments bigger.
Perhaps you'd like to cash out a portion of the home equity (cash out) to use toward other debt. If you have enough equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Paying it off Faster
Are you planning to fatten your home equity faster, and pay off your mortgage loan more quickly? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. The monthly payments will likely be higher than with the long-term mortgage, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. However, if you've held your current 30-year mortgage loan for a long time and the remaining balance is relatively low, you may be able to do this without raising your monthly payment — you could even be able to save! To help you understand your options and the numerous benefits of refinancing, please call us at 7072522700. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 7072522700.