Which Refinancing Program is Right for You?
The huge number of refinance options available is truly breathtaking. Contact us at 754-202-4376 and we can work with you to qualify you for the right loan program for your financial needs. What are your goals for your refinance loan? Considering 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 currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low interest rate for the term of your loan. This kind of loan can be especially a good idea if you aren't expecting a move within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you want to find a loan for more than the balance remaining on your present mortgage loan.With this goal, you will want You might not increase your mortgage payemnt, however, if you've had your existing mortgage for a long time, and/or your interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out a portion of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.
Switching to a Shorter Term Loan
Do you hope to build up home equity more quickly, and pay off your mortgage sooner? In that case, you'll want to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Although your mortgage payment amount will usually be increased, you can save on interest; so your equity amount will build up faster. But, you may be able to switch without a bigger monthly mortgage payment if your longer term mortgage was closed a while back, and the balance remaining is small. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 754-202-4376. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us: 754-202-4376.