Refinancing: Which Loan Program is for You?
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The huge number of refinance options available to borrowers is truly breathtaking. Call us at 4808226290 and we can match you with the refinance program that is best for you. What are your reasons for your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and a better rate your main reasons for refinancing? If so, getting a low, fixed-rate loan could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for at least five more years, a fixed rate loan may be a particularly good choice for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or take a cruise. In this case, you want to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you'll You'll be looking for a loan for more than the balance remaining on your present mortgage in that case. You might not increase your monthly payment, however, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Perhaps you hope to pull out some equity (cash out) to put toward other debt. If you have any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? In that case, you'll want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Although your mortgage payment amount will usually be increased, you will be paying less interest; so your equity will build up faster. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at 4808226290. We are here for you.
Curious about refinancing? Give us a call: 4808226290.