Refinancing: Which Program is for You?

The number of refinance options available to borrowers can be overwhelming. Call us at 754-202-4376 and we can match you with the refinance program that is best for you. There are several things to have in mind as you review your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low interest rate for the life of your mortgage. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a great option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.

Getting Out some Cash

Is "cashing out" your primary reason for your refinance? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you need to qualify for a loan for more than the remaining balance on your present mortgage.Then you'll You will be looking for a loan for a bigger amount than the current balance of your existing mortgage in that case. However, if your interest rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without making your mortgage payments bigger.

Debt Consolidation

Maybe you want to pull out some of the equity (cash out) to put toward other debt. If you have the home equity for it, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your budget each month.

Paying it off Sooner

Do you hope to build up equity more quickly, and pay off your mortgage faster? In that case, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your payments will likely be higher than you were paying. But, you might be able to make the change without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while back, and the balance remaining is small. You could even pay less! To help you determine your options and the numerous benefits of refinancing, please contact us at 754-202-4376. We can help you reach your goals!

Curious about refinancing your home? Call us: 754-202-4376.