Which Refinancing Loan Program is Best for You?
Although it seems like it at times, there aren't as many refinance choices as there are borrowers! We can guide you to select the refinance loan program that can fit your needs the best. Call us at 9164348915 to get started. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low rate for the life of your mortgage. This kind of loan can be particularly a wise option if you aren't planning a move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM with a low initial rate may be the best way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Your home needs renovating; your daughter has gone to college and needs tuition; or you have a special family vacation planned. With this in mind, you need to get a loan higher than the remaining balance of your existing mortgage.Then you want to qualify for a loan for a higher amount than the remaining balance on your present mortgage. You may not increase your mortgage payemnt, though, if you have had your existing mortgage for a while, and/or your loan interest rate is high.
Do you want to pull out some home equity to consolidate additional debt? Great plan! If you have some debt with higher interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Do you want to build up equity more quickly, and pay off your mortgage sooner? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Your monthly payments will likely be more than they were with your long-term mortgage loan, but the pay-off is: you will pay substantially less interest and can build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is somewhat low. You could even pay less! To help you understand your options and the numerous benefits in refinancing, please call us at 9164348915. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call at 9164348915.