Refinancing: Which Option is for You?
There are a huge number of refinancing programs available to borrowers. We can guide you to select the loan program that can fit your situation the best. Contact us at 754-202-4376 to get things started. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and an improved rate your main refinance goals? Then a good option may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you see yourself moving in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you will need to qualify for a loan above the remaining balance on your existing mortgage.So you want However, if your 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 monthly payments rise.
Perhaps you want to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars per month.
Building up Equity Faster
Do you want to build up home equity quicker, and pay off your mortgage more quickly? In that case, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your payments will probably be more than they were with a long-term mortgage loan, but in exchange, that you will pay substantially less interest and will build up equity more quickly. However, if you have held your existing 30 year loan for a number of years and the remaining balance is relatively low, you may be do this without increasing your mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 754-202-4376. We are here for you.
Want to know more about refinancing your home? Call us at 754-202-4376.