Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than borrowers! We can help you choose the refinance loan program that will fit your needs the best. Contact us at 866-840-8745 x2 to get started. surveying your choices, you can determine your goals for the refinance.
Lowering Your Payments
Are achieving lower mortgage payments and a better rate your main refinance goals? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage loan must 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 fixed-rate loan may be a particulary good fit for you. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you see yourself moving in the next few years.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Your home needs improvements; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you will need to get a loan higher than the remaining balance on your current mortgage.With this goal, you'll You'll be looking for a loan for more than the current balance with your current mortgage in this case. However, if your loan interest rate is high now and you've had it for a long time, you could be able to reach your goals without making your mortgage payments bigger.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have built up some equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Building up Equity Faster
Do you hope to build up home equity quicker, and pay off your mortgage faster? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Even though your monthly payments will likely be more, you will save on interest; so your equity amount will rise up faster. Conversely, if your current long-term mortgage has a low 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 multiple benefits in refinancing, please call us at 866-840-8745 x2. We are here for you.
Want to know more about refinancing your home? Call us at 866-840-8745 x2.