Choosing a Refinancing Option
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than borrowers! Call us at 754-202-4376 and we will help you qualify for the best refinance loan program for your financial situation. What are your goals for refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and a lower rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. This can be especially a wise choice if you aren't planning a move within the next five years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you will need to find a loan for more than the remaining balance on your present mortgage loan.With this goal, you will need You may not have an increase in your monthly payemnt, though, if you've had your existing mortgage for a long time, and/or your loan interest rate is high.
Maybe you want to pull out a portion of the home equity (cash out) to put toward other debt. If you hold any higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Do you need to build up home equity more quickly, and pay off your mortgage faster? Then, you want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and growing your equity more quickly, although your mortgage payments will usually be more than they were. But, you could be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while back, and the balance remaining is somewhat low. You could even pay less! To help you understand your options and the numerous benefits in refinancing, please contact us at 754-202-4376. We are here for you.
Curious about refinancing your home? Give us a call: 754-202-4376.