Which Refinancing Loan Program is Right for You?
The huge number of refinance options available to borrowers is truly breathtaking. We can help you find the refinance loan program that can fit your financial situation the best. Call us at 754-202-4376 to get things started. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even when interest rates rise. If you plan to stay in your home for at least five more years, a fixed rate loan may be a particulary good option for you. However, if you can see yourself selling your home in the near future, an ARM with a low initial rate could be the ideal way to lower your monthly payment.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? It could be you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. So you'll want to find a loan for more than the balance remaining of your current mortgage loan.In this case, you will want You might not have an increase in your monthly payemnt, though, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate additional debt? Excellent idea! If you own some higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Paying it off Sooner
Are you hoping to fatten up your home equity faster, and pay off your mortgage sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage. The mortgage payments will likely be more than they were with the long-term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. However, if you've had your current thirty year mortgage loan for a long time and the remaining balance is somewhat low, you might be able to do this without increasing your monthly payment — you might even be able to save! To help you understand your options and the numerous benefits of refinancing, please contact us at 754-202-4376. We are here for you.
Want to know more about refinancing? Give us a call at 754-202-4376.