Refinancing: Which Option is for You?

When you are overwhelmed with so many choices, it may seem like there are even more loan programs than applicants! Call us at 7209331025 and we will help you qualify for the right refinance program for your situation. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good option may be a low fixed-rate loan. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This is particularly a good choice if you don't think you will sell your home within the next 5 years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.

Getting Out some Cash

Is "cashing out" your primary reason for refinancing? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or go on a special family vacation. In this case, you need to find a loan for more than the balance remaining on your present mortgage.In that case, you will You'll need to qualify for a loan for a bigger amount than the current balance with your existing mortgage in that case. You may not have an increase in your monthly payemnt, though, if you've had your existing mortgage for a while, and/or your loan interest rate is high.

Consolidating Debt

Maybe you hope to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have enough equity.

Paying it off Faster

Are you hoping to fatten up your equity faster, and pay off your mortgage loan more quickly? You should consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your home equity faster, even though your monthly payments will likely be more than you have been paying. But, you could be able to switch without a bigger monthly mortgage payment if your long term loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at 7209331025. We are here for you.

Want to know more about refinancing your home? Give us a call at 7209331025.