Refinancing: Which Loan Program is for You?
There are not as many loan program choices as there are borrowers, but it feels like it at times! Call us at 754-202-4376 and we will match you with the refinance program that fits you best. There are some general things to keep in mind while you look at the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right option for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage loan, even as interest rates rise. This kind of loan is especially a wise idea if you aren't expecting a move within the next five years or so. However, an ARM with a low intitial payment could be a smarter way to lower your payments if you plan on moving in the next few years.
Are you refinancing mainly to pull out some equity for an infusion of cash? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you will want to get a loan above the remaining balance of your present mortgage loan.So you'll want to need to qualify for a loan program for a higher number than the balance remaining on your present mortgage loan. However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Perhaps you want to cash out some of the equity (cash out) to put toward other debt. If you hold any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage. The monthly payments will probably be higher than with your longer term loan, but in exchange, you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at 754-202-4376. We can help you reach your goals!
Want to know more about refinancing? Call us: 754-202-4376.