Which Refinancing Option is Right for You?
The huge number of refinance options available can be overwhelming. Contact us at 754-202-4376 and we can match you with the refinance loan program that is best for your needs. There are some general things to bear in mind while you consider the options.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good choice for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low interest rate for the life of your mortgage. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. In this case, you need to find a loan above the balance remaining on your present mortgage loan.So you will want You may not increase your monthly payemnt, though, if you've had your current mortgage loan for a while, and/or your loan interest rate is high.
Do you want to pull out some of your equity to consolidate additional debt? Good idea! If you own any higher interest debts (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your home equity more quickly? If this is your goal, your refinance can move you to a loan program with a short, for example: a 15 year loan. The mortgage payments will likely be higher than they were with your longer term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at 754-202-4376. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: 754-202-4376.