Which Refinancing Option is Right for You?
There aren't as many loan program choices as there are applicants, but sometimes it feels like it! We can help you locate the refinance program that can fit your financial situation the best. Call us at 7072522700 to get started. There are several questions to ask yourself while you look at your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low interest rate for the term of your mortgage. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a good option. However, if you do see yourself moving within several years, an ARM mortgage with a small initial rate may be the ideal way to reduce your monthly payments.
Are you refinancing primarily to pull out some home equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you'll want to get a loan higher than the balance remaining on your current mortgage loan.So you will You will be looking for a loan for a bigger amount than the remaining balance with your present mortgage loan in this case. However, if your loan interest rate is currently high and you've held it for quite a few years, you may be able to reach your goals without making your mortgage payments rise.
Consolidating Your Debt
Maybe you'd like to cash out a portion of the home equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Building up Equity Faster
Are you planning to fatten your equity faster, and pay off your mortgage more quickly? If this is your goal, the refinance can switch you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be more than you were paying. But, you might be able to switch without a bigger monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is low. You could even pay less! To help you understand your options and the many benefits of refinancing, please call us at 7072522700. We are here for you.
Want to know more about refinancing your home? Call us: 7072522700.