Selecting a Refinancing Program
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! Call us at 754-202-4376 and we can work with you to qualify you for the best refinance loan to fit your situation. In order to review your options, you need to think about what you want to achieve with the refinance.
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 your best option. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you want to qualify for a loan higher than the remaining balance on your present mortgage.In this case, you'll need You may not have an increase in your mortgage payemnt, however, if you've had your current mortgage for a long time, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you want to pull out some equity (cash out) to use toward other debt. If you have any debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. Your mortgage payments will probably be higher than with a long-term loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you may be able to switch without a higher monthly payment if your longer term loan was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 754-202-4376. We will help you reach your goals!
Curious about refinancing? Call us at 754-202-4376.