Refinancing: Which Option is for You?
Even though it may seem like it at times, there aren't as many refinance loan choices as there are applicants! Call us at 754-202-4376 and we will work with you to qualify you for the right refinance loan program to fit your situation. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are getting lower payments and an improved rate your main refinance goals? Then the best option may be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed rate mortgage may be a particulary good choice for you. However, if you do see yourself selling your home before too long, an ARM mortgage with a low initial rate might be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you will need to find a loan above the remaining balance on your current mortgage loan.In that case, you'll want to qualify for a loan program for a bigger number than the balance remaining on your existing mortgage loan. You might not have an increase in your monthly payemnt, though, if you've had your existing loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have a fair amount of home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of money each month.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and increasing your home equity faster, although your monthly payments will usually be higher than they were. Conversely, if your current longer term mortgage has a small remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at 754-202-4376. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 754-202-4376.