Which Refinancing Option is Right for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at 754-202-4376 and we will match you with the loan program that best fits you. What are your goals for your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Is "cashing out" your primary reason for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will need to find a loan above the remaining balance of your existing mortgage.Then you'll You will be looking for a loan for more than the balance remaining of your existing mortgage in this case. However, if your loan interest rate is high now and you've held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you own any debt with high interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage loan off more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your home equity more quickly, even though your payments will generally be more than they were. But, you may be able to switch without a higher monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at 754-202-4376. We are here for you.
Want to know more about refinancing your home? Call us at 754-202-4376.