Refinancing: Which Option is for You?
Although it may seem like it sometimes, there are not as many refinance loan options as there are borrowers! Contact us at 4086261879 and we'll work with you to qualify you for the right refinance program to fit your situation. There are some general things to bear in mind as you look at your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the term of your mortgage. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. However, an ARM with a low intitial payment may be a better way to lower your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you will need to look for a loan above the remaining balance on your present mortgage loan.In that case, you You will be looking for a loan for more than the current balance on your current mortgage in this case. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Great idea! If you hold any debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your equity faster? You should consider refinancing with a shorterterm loan, like a 15-year mortgage. Although your monthly payment amount will usually be more, you will be paying less interest; so your home equity will build up faster. Conversely, if your existing longer term mortgage has a low remaining balance, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at 4086261879. We are here for you.
Want to know more about refinancing? Call us: 4086261879.