Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 754-202-4376 and we'll work with you to qualify you for the perfect loan program to fit your financial situation. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the life of your mortgage. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. However, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate could be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? Your home needs improvements; your son has been accepted to University and needs tuition; or you have a special family vacation planned. So you will want to get a loan higher than the balance remaining of your existing mortgage.So you'll want If you've had your current mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have enough home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? If this is your goal, the refinance loan can switch you to a mortgage program with a shorter term, like a 15 year loan. Although your monthly payment amount will likely be more, you can be paying less interest; so your home equity will build up faster. Conversely, if your existing longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at 754-202-4376. We are here for you.
Curious about refinancing your home? Give us a call at 754-202-4376.