Which Refinancing Loan Program is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at (800)593-0143 and we can match you with the refinance loan program that is best for your needs. There are some general questions to ask yourself as you consider your choices.
Lowering Your Payments
Are getting lower monthly payments and an improved rate your main refinance goals? If so, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in the low rate for the term of your loan. This kind of loan can be especially a wise option if you don't plan to sell your home within the next 5 years or so. However, an ARM with a low intitial payment may be a smarter way to lower your mortgage payments if you see yourself moving in the near future.
Getting Out some Cash
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you want to make home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you need to get a loan for more than the remaining balance on your present mortgage.Then you want However, if your interest rate is currently high and you've held it for quite a few years, you could be able to reach your goals without making your mortgage payments higher.
Consolidating Your Debt
Perhaps you'd like to cash out some equity in your home (cash out) to put toward other debt. If you have any debt with high interest (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Even though your mortgage payment amount will probably be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your current longer term loan has a low balance remaining, and was closed a while ago, you may be able to make the move without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at (800)593-0143. We can help you reach your goals!
Curious about refinancing your home? Call us: (800)593-0143.