Which Refinancing Program is Best for You?

There are an enormous number of refinancing options available to borrowers. We can help you choose the refinance program that will fit your financial situation the best. Call us at 7209331025 to get things started. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a good option for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low rate for the life of your mortgage. A fixed-rate mortgage can be particularly a wise idea if you don't think you'll be moving within the next five years or so. However, if you do see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the ideal way to reduce your monthly payments.

Getting Out some Cash

Are you hoping to cash out some of your equity with your refinance? It could be you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you want to look for a loan for more than the balance remaining on your current mortgage loan.So you will want to find a loan for a higher number than the remaining balance on your current mortgage loan. You might not have an increase in your mortgage payemnt, however, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.

Consolidating Debt

Perhaps you'd like to cash out some home equity (cash out) to put toward other debt. If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.

Building up Equity More Quickly

Are you dreaming of paying off your loan sooner, while building up your equity quicker? You should consider refinancing to a short-term loan, such as a 15-year mortgage. Although your mortgage payment amount will probably be more, you will be paying less interest; so your home equity will rise up faster. On the other hand, if your existing long-term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at 7209331025. We are here for you.

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