Which Refinancing Loan Program is Right for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 754-202-4376 and we will work with you to qualify you for the right refinance program for your financial needs. There are several questions to ask yourself while you review your choices.
Lowering Your Payments
Are getting lower payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be the ideal option for you. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage, even when interest rates rise. If you are planning to live in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a low intitial payment may be a smarter way to reduce your payments if you plan on moving within the near future.
Getting Out some Cash
Is "cashing out" your primary reason for your refinance? Your home needs updating; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. With this in mind, you will need to find a loan above the remaining balance on your present mortgage.In that case, you'll need However, if your loan interest rate is currently high and you've had it for a long time, you could be able to achieve your goals without making your mortgage payments bigger.
Do you want to cash out some home equity to consolidate additional debt? Excellent idea! If you have enough home equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Paying it off Faster
Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Consider refinancing to a short-term loan, like a 15-year mortgage loan. The mortgage payments will likely be higher than with a longer term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. However, if you've had your existing 30 year mortgage for a number of years and the loan balance is somewhat low, you may be do this without raising your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please call us at 754-202-4376. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call: 754-202-4376.