Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than applicants! Call us at 754-202-4376 and we will help you qualify for the perfect refinance program for your financial situation. surveying your options, you should list what you want to achieve with the refinance.
Making Your Payments Lower
Are achieving lower mortgage payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal loan program for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low rate for the term of your loan. A fixed-rate mortgage can be especially a wise option if you don't plan to move within the next 5 years or so. However, if you can see yourself moving within the next few years, an ARM mortgage with a small initial rate could be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your equity with your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you'll need to get a loan for more than the balance remaining on your existing mortgage.Then you'll want You might not have an increase in your monthly payemnt, though, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your budget each month.
Paying it off Faster
Are you hoping to fatten up your equity faster, and pay your mortgage loan off more quickly? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. The mortgage payments will likely be higher than they were with a longer term mortgage, but in exchange, that you will pay considerably less interest and will build up equity more quickly. However, if you have had your current 30-year loan for a long time and the loan balance is somewhat low, you may be do this without increasing your mortgage payment — you might even be able to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 754-202-4376. We are here for you.
Curious about refinancing your home? Call us: 754-202-4376.