Selecting a Refinancing Loan

Although it may seem like it sometimes, there aren't as many refinance loan options as there are applicants! Call us at 3032282254 and we can match you with the refinance program that is best for your needs. There are some general questions to ask yourself while you consider the options.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a wise option. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you expect to move in the next few years.

Getting Out some Cash

Are you wanting to cash out some of your home equity with your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition money; or you are planning a special vacation. Then you'll need to qualify for a loan for more than the remaining balance of your current mortgage loan.With this goal, you will You'll be looking for a loan for more than the current balance with your existing home loan in this case. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.

Debt Consolidation

Maybe you hope to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home for it, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan faster, while building up your home equity quicker? If this is your goal, the refinance loan can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will usually be bigger than you were paying. On the other hand, if your existing longer term loan has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at 3032282254. We will help you reach your goals!

Want to know more about refinancing your home? Call us: 3032282254.