Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. Call us at 866-840-8745 x2 and we'll help you qualify for the right loan program for your needs. In order to review your choices, you will need to determine your goals for your refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right option for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even when rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the term of your loan. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you expect to move within the near future.
Are you wanting to cash out some of your equity in your refinance? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you'll want to look for a loan above the balance remaining on your existing mortgage.With this goal, you will You will be looking for a loan for a higher amount than the current balance with your existing home loan in this case. You might not have an increase in your mortgage payemnt, however, if you have had your current mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you have a fair amount of equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Paying it off Sooner
Are you wanting to fatten your equity faster, and pay your mortgage loan off sooner? In that case, you need to look into refinancing to a short term mortgage loan - like a fifteen-year loan. Even though your monthly payments will probably be more, you will save on interest; so your equity amount will build up faster. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a number of years ago, you could be able to make the switch 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 are here for you.
Curious about refinancing? Call us: 866-840-8745 x2.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.