Choosing a Refinancing Program
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than applicants! Contact us at 754-202-4376 and we can match you with the loan program that is ideal for your needs. surveying your options, you need to list what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. However, an ARM with a initial low payment could be a better way to lower your payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Your home needs updating; your son has gone to University and needs tuition money; or you are planning a special vacation. In this case, you will want to get a loan above the remaining balance on your present mortgage loan.With this goal, you'll You'll be looking for a loan for more than the remaining balance on your existing home loan in this case. However, if your interest rate is high now and you have held it for a long time, you could be able to achieve your goals without making your mortgage payments higher.
Do you want to pull out some of your equity to consolidate other debt? Great plan! If you have built up some equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Paying it off Faster
Are you hoping to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. Although your monthly payments will probably be increased, you will be paying less interest; so your equity amount will build up faster. However, if you've had your current 30-year mortgage loan for a long time and the remaining balance is rather low, you may be able to do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at 754-202-4376. We will help you reach your goals!
Want to know more about refinancing your home? Call us at 754-202-4376.