Which Refinancing Program is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us and we can help you qualify for the best refinance program for your financial needs. In the interest of looking at your options, you will need to determine your goals for your refinance.
Reducing Your Monthly Payments
Are achieving reduced payments and a better rate your main reasons for refinancing? In that case, a good choice may be a low fixed-rate loan. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good choice if you aren't planning a move within the next 5 years or so. On the other hand, if you can see yourself selling your home before too long, an ARM with a small initial rate could be the ideal way to bring down your monthly payments.
Is your refinance goal primarily to "cash out" some home equity? Perhaps you want to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you want to look for a loan higher than the balance remaining on your existing mortgage.So you will You'll be looking for a loan for more than the balance remaining on your present mortgage in that case. However, if your mortgage rate is high now and you've had it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your home equity to consolidate additional debt? Good idea! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars per month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your home equity quicker? In that case, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, although your monthly payments will likely be bigger than you were paying. On the other hand, if your current longer term loan has a low balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month.
To help you figure out your options and the many benefits in refinancing, please contact us.
We are here for you.