Refinancing: Which Program is for You?

Although it may seem like it sometimes, there are not as many refinance options as there are borrowers! Call us at 3032282254 and we will match you with the refinance loan program that is ideal for your needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the term of your loan. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a great loan option. However, an ARM with a low intitial payment could be a smarter way to reduce your monthly payments if you expect to move in the next few years.

Getting Out some Cash

Are you wanting to cash out some of your equity in your refinance? Your home needs new carpet; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. With this in mind, you'll need to apply for a loan higher than the balance remaining on your existing mortgage.Then you will want to qualify for a loan program for a higher number than the remaining balance on your existing mortgage loan. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.

Debt Consolidation

Maybe you'd like to cash out a portion of the equity in your home (cash out) to put toward other debt. If you hold any debt with high interest (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough equity.

Building up Equity Faster

Are you hoping to fatten your equity faster, and pay your mortgage off sooner? Then, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will likely be bigger than they were. However, if you've had your existing thirty-year mortgage loan for a number of years and the loan balance is somewhat low, you might be do this without increasing your monthly payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at 3032282254. We would love to help you reach your goals!

Want to know more about refinancing your home? Give us a call: 3032282254.