Selecting a Refinancing Loan
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! We can guide you to select the loan program that will fit your financial situation the best. Call us at (800)593-0143 to get things started. In the interest of looking at your choices, you should list your goals for your refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then the best choice could be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. This is particularly a good idea if you don't think you'll be selling your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you will want to find a loan higher than the remaining balance of your current mortgage loan.With this goal, you will You'll be looking for a loan for more than the balance remaining of your existing mortgage in this case. However, if your interest rate is currently high and you've had it for a long time, you could be able to achieve your goals without a rise in your mortgage payment.
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you have some debt with higher interest (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Building up Equity Faster
Do you hope to build up equity quicker, and have your mortgage paid off faster? If this is your plan, the refinance mortgage can switch you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will generally be higher than you have been paying. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please call us at (800)593-0143. We are here for you.
Curious about refinancing your home? Give us a call: (800)593-0143.