Which Refinancing Loan Program is Best for You?
There are not as many loan program choices as there are applicants, but it feels like it at times! Contact us at 5622061550 and we can match you with the refinance program that best fits you. In the interest of looking at your choices, you'll need to determine what you want to achieve with your refinance.
Lowering Your Payments
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you expect to live in your home for at least five more years, a fixed rate loan may be an especially good option for you. However, an ARM with a low intitial payment may be a smarter way to reduce your mortgage payments if you plan on moving in the next few years.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. So you will want to look for a loan higher than the remaining balance on your current mortgage.With this goal, you will need You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Perhaps you hope to cash out some of the home equity (cash out) to use toward other debt. If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars a month.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay off your mortgage sooner? If this is your hope, the refinance can switch you to a mortgage loan program with a short, for example: a 15 year loan. Although your mortgage payments will usually be more, you will save on interest; so your home equity will rise up faster. But, you could be able to switch without a higher monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at 5622061550. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 5622061550.