Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. We can help you choose the refinance loan program that will fit your needs the best. Contact us at 754-202-4376 to get things started. In order to review your options, you need to consider your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the term of your mortgage. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good loan option. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you plan on moving within the near future.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you'll want to get a loan for more than the remaining balance on your current mortgage.So you will want to find a loan for a bigger amount than the balance remaining on your existing mortgage loan. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you own some debt with higher interest (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and pay off your mortgage sooner? If this is your goal, the refinance can move you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your payments will likely be more than you were paying. But, you might 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 balance remaining is somewhat low. You could even pay less! To help you understand your options and the numerous benefits of refinancing, please contact us at 754-202-4376. We would love to help you reach your goals!
Curious about refinancing? Call us at 754-202-4376.