Refinancing: Which Program is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 754-202-4376 and we can match you with the refinance program that fits you best. There are some general things to have in mind as you review your options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then your best option could be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Even if interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a good choice. 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 mortgage payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some equity for an infusion of cash? It could be you want to make home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you will want to find a loan higher than the remaining balance on your current mortgage.So you need However, if your mortgage rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without making your monthly payments bigger.
Maybe you hope to cash out a portion of the home equity (cash out) to put toward other debt. If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Paying it off Faster
Do you hope to build up home equity quicker, and have your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. The mortgage payments will likely be more than with your longer term mortgage loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your existing longer term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at 754-202-4376. We are here for you.
Want to know more about refinancing? Call us: 754-202-4376.