Which Refinancing Option is Best for You?
There aren't as many loan program choices as there are applicants, but at times it feels like it! Call us at 754-202-4376 and we will help you qualify for the perfect refinance loan to fit your situation. In order to review your choices, you will need to think about your goals for the refinance.
Making Your Payments Lower
Are getting reduced payments and a lower rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good option for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. This can be particularly a good choice if you aren't expecting a move within the next 5 years or so. However, an ARM with a initial low payment could be a better way to reduce your monthly payments if you see yourself moving in the near future.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. So you will need to get a loan higher than the remaining balance of your current mortgage loan.With this goal, you'll want However, if your mortgage rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your mortgage payments higher.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Yes you can! If you have built up some equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? If this is your plan, your refinance loan can change you to a mortgage program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will generally be higher than you were paying. On the other hand, if your existing longer term mortgage has a small balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 754-202-4376. We will help you reach your goals!
Want to know more about refinancing? Give us a call: 754-202-4376.