Which refinancing option is best for you?
There aren’t as many refinance loan programs as there are applicants, but at times it feels like it! We can help you choose the refinance program that will fit your needs the best. Contact us at 800-707-3683 to get started. surveying your options, you can think about what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and a better rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a great loan option. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is “cashing out” your primary purpose for your refinance? Your house needs improvements; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. Then you will want to apply for a loan for more than the balance remaining of your current mortgage loan.In that case, you want You may not have an increase in your mortgage payment, however, if you have had your existing mortgage loan for a long time, and/or your interest rate is high.
Debt Consolidation
Maybe you want to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have any higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay off your mortgage loan sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Even though your mortgage payments will usually be increased, you will save on interest; so your home equity will rise up faster. On the other hand, if your current long-term mortgage loan has a small remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month.
To help you figure out your options and the numerous benefits of refinancing, please contact us at 800-707-3683. We are here for you.