Which Refinancing Loan Program is Best for You?
There are not as many loan program choices as there are borrowers, but it feels like it sometimes! We can help you choose the loan program that will fit your financial situation the best. Contact us at 3032282254 to begin the process. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best option could be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a low initial rate might be the ideal way to reduce your monthly payments.
Is "cashing out" your main purpose for refinancing? Your home needs new carpet; your son has been accepted to University and needs tuition money; or you are planning a special vacation. Then you need to find a loan above the remaining balance on your present mortgage loan.Then you want to qualify for a loan program for a bigger number than the balance remaining on your present mortgage loan. If you've had your current mortgage for a number of years and/or have a loan with high interest, you may be able to do this without increasing your mortgage payment.
Maybe you want to cash out a portion of the equity (cash out) to put toward other debt. If you have the home equity for it, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity Faster
Do you plan to build up equity quicker, and pay off your mortgage faster? You should consider refinancing to a shorterterm loan, often a 15-year mortgage. Your mortgage payments will likely be more than they were with your long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity more quickly. However, if you've held your existing 30 year mortgage for a long time and the remaining balance is relatively low, you may be able to do this without raising your monthly payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 3032282254. We are here for you.
Curious about refinancing your home? Give us a call: 3032282254.