Which Refinancing Program is Right for You?
The number of refinance options available can be overwhelming. We can help you choose the refinance program that will fit your financial situation the best. Contact us at 754-202-4376 to begin the process. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good option for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. However, an ARM with a low intitial payment may be a wiser way to reduce your monthly payments if you plan on moving in the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Your house needs renovating; your son has gone to University and needs tuition money; or you have a special family vacation planned. So you want to find a loan above the balance remaining of your existing mortgage loan.So you want to need to get a loan program for a higher number than the remaining balance on your existing mortgage. However, if your loan interest rate is high now and you have held it for a long time, you may be able to achieve your goals without making your monthly payments rise.
Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you own some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you planning to fatten your equity faster, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, like a 15-year mortgage. The mortgage payments will probably be more than with the long-term mortgage loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. 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.