Which Refinancing Program is Best for You?
There are not as many refinance loan options as there are borrowers, but it feels like it sometimes! Call us at 9164348915 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. On the other hand, if you can see yourself moving within the next few years, an ARM mortgage with a low initial rate might be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? It could be you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you want to find a loan higher than the balance remaining on your existing mortgage loan.In that case, you want You might not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Maybe you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have a fair amount of home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while building up your equity faster? If this is your plan, your refinance can switch you to a loan program with a shorter term, for example: a 15 year loan. Your monthly payments will probably be higher than they were with the long-term loan, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. Conversely, if your existing long-term mortgage loan has a small remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please call us at 9164348915. We can help you reach your goals!
Want to know more about refinancing? Call us: 9164348915.