Refinancing: Which Loan Program is for You?
Although it seems like it at times, there aren't as many loan programs as there are borrowers! We can guide you to locate the refinance loan program that can fit your financial situation the best. Call us at 3032282254 to begin the process. There are several things to keep in mind while you review your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best option could be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a fixed rate mortgage may be a particulary good choice for you. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a small initial rate might be the best way to bring down your monthly payment.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. With this in mind, you will need to get a loan higher than the remaining balance of your present mortgage.So you will You'll want to apply for a loan for more than the current balance with your present mortgage loan in this case. However, if your loan interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without making your mortgage payments bigger.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your equity faster? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. Even though your monthly payment amount will probably be increased, you will save on interest; so your equity will rise up faster. However, if you have held your existing 30-year loan for a long time and the remaining balance is somewhat low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at 3032282254. We will help you reach your goals!
Curious about refinancing? Give us a call at 3032282254.