Refinancing: Which Option is for You?
The huge number of refinance options available is truly breathtaking. Contact us at 3032282254 and we can help you qualify for the right refinance program to fit your situation. There are some general questions to ask yourself as you look at your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even when interest rates rise. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your house needs renovating; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. Then you need to get a loan higher than the balance remaining of your current mortgage.With this goal, you will need If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you have other debt, perhaps with high interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your budget each month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your home equity more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. Although your mortgage payments will usually be more, you can be paying less interest; so your equity will rise up faster. But, you might be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the many benefits in refinancing, please call us at 3032282254. We are here for you.
Curious about refinancing your home? Give us a call: 3032282254.