Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than borrowers! Contact us at 4086261879 and we can work with you to qualify you for the perfect refinance loan for your financial situation. surveying your choices, you can list your goals for your refinance.
Making Your Payments Lower
Are achieving reduced mortgage payments and an improved rate your main refinance goals? In that case, a good option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even if interest rates rise. If you aren't expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the ideal way to lower your monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you need to find a loan for more than the balance remaining on your present mortgage loan.Then you'll need However, if your mortgage rate is high now and you have held it for a long time, you may be able to achieve your goals without making your mortgage payments rise.
Perhaps you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you hold some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? Consider refinancing to a short-term loan, often a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your monthly payments will likely be more than you were paying. But, you may be able to make the change without a bigger monthly payment if your longer term loan was closed a while back, and the balance remaining is small. You could even pay less! To help you understand your options and the multiple benefits in refinancing, please contact us at 4086261879. We are here for you.
Want to know more about refinancing your home? Give us a call at 4086261879.