Refinancing: Which Option is for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at 3032282254 and we can match you with the loan program that is ideal for your needs. In order to review your choices, you should think about your goals for the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best option could be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a good option. On the other hand, if you can see yourself moving within several years, an ARM with a low initial rate may be the ideal way to bring down your monthly payment.
Getting Out some Cash
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? It could be you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you need to find a loan above the remaining balance on your current mortgage loan.In this case, you will want However, if your mortgage rate is high now and you've had it for a long time, you could be able to reach your goals without making your mortgage payments higher.
Consolidating Your Debt
Do you want to pull out some of your home equity to consolidate other debt? Yes you can! If you hold some debt with higher interest (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of equity.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity quicker? If this is your wish, the refinance loan can move you to a loan program with a shorter term, for example: a 15 year loan. Your monthly payments will likely be more than they were with the long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. But, you could be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the remaining balance is small. You may even make it lower! To help you figure out your options and the numerous benefits of refinancing, please call us at 3032282254. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 3032282254.