Selecting a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Contact us at 9164348915 and we will match you with the refinance loan program that best fits you. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low interest rate for the life of your mortgage. This is particularly a good option if you aren't expecting a move within the next five years or so. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you expect to move within the near future.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. So you will need to find a loan higher than the balance remaining on your existing mortgage.With this goal, you will You will need to find a loan for more than the current balance on your existing home loan in this case. However, if your mortgage rate is currently high and you've had 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'd like to pull out some of the equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars per month.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? Consider refinancing to a short-term loan, like a 15-year mortgage loan. The mortgage payments will likely be higher than with the long-term mortgage loan, but in exchange, that you will pay substantially less interest and will build up equity quicker. But, you could be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you figure out your options and the multiple benefits in refinancing, please contact us at 9164348915. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: 9164348915.