Which Refinancing Loan Program is Right for You?
There aren't as many loan program choices as there are applicants, but sometimes it feels like it! Contact us at 754-202-4376 and we can match you with the refinance program that is best for you. What do you hope to achieve with refinancing? Considering in mind the information below 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 may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the term of your loan. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a wise option. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you want to apply for a loan for more than the balance remaining of your current mortgage loan.In this case, you need If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out some equity to consolidate other debt? Good plan! If you have the home equity to make it work, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity Faster
Do you plan to build up home equity quicker, and pay off your mortgage more quickly? In that case, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Your mortgage payments will probably be higher than they were with a long-term mortgage, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage 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 understand your options and the many benefits of refinancing, please call us at 754-202-4376. We are here for you.
Want to know more about refinancing your home? Call us: 754-202-4376.