Which Refinancing Loan Program is Best for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at 6023326989 and we can match you with the loan program that fits you best. In the interest of looking at your options, you can list your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal option for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the life of your loan. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a wise option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Your house needs new carpet; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. In this case, you'll need to look for a loan above the balance remaining of your current mortgage loan.In this case, you will need If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate additional debt? Good idea! If you have the equity in your home 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).
Building up Equity More Quickly
Do you plan to build up home equity quicker, and have your mortgage paid off more quickly? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. Your monthly payments will likely be higher than they were with the long-term mortgage, but the pay-off is: you will pay substantially less interest and can build up equity quicker. On the other hand, if your existing long-term mortgage has a small remaining balance, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at 6023326989. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 6023326989.