Which Refinancing Loan Program is Best for You?
The number of refinance options available to borrowers can be overwhelming. Call us at 4086261879 and we'll work with you to qualify you for the best refinance loan program to fit your needs. What are your reasons for your refinance loan? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then your best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low rate for the term of your loan. If you are planning to live in your home for about five more years, a loan with a fixed rate may be a particulary good option for you. However, an ARM with a low intitial payment could be a wiser way to lower your monthly payments if you plan on moving within the near future.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you need to apply for a loan for more than the remaining balance of your current mortgage loan.With this goal, you'll want to need to find a loan program for a higher number than the remaining balance on your existing mortgage loan. However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Getting a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? Then, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The monthly payments will probably be more than with your long-term mortgage, but the pay-off is: that you will pay substantially less interest and can build up equity quicker. But, you may be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the balance remaining is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please contact us at 4086261879. We are here for you.
Curious about refinancing your home? Call us at 4086261879.