Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than borrowers! Contact us at 866-840-8745 x2 and we'll help you qualify for the best refinance loan for your financial needs. In order to review your options, you need to list what you want to achieve with the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a good option could be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a loan with a fixed rate may be an especially good option for you. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you plan on moving in the next few years.
Are you refinancing primarily to "cash out" some home equity? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll need to get a loan above the balance remaining of your current mortgage loan.Then you want to qualify for a loan program for a higher amount than the balance remaining on your present mortgage loan. You may not have an increase in your mortgage payemnt, however, if you've had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your budget each month.
Building up Equity More Quickly
Do you plan to build up home equity quicker, and pay off your mortgage faster? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Even though your monthly payment amount will usually be more, you can be paying less interest; so your equity amount will rise up faster. Conversely, if your current long-term loan has a small remaining balance, and was closed a while ago, you may be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 866-840-8745 x2. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call at 866-840-8745 x2.
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