Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than applicants! Call us at (800)593-0143 and we can help you qualify for the right loan program to fit your situation. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a good option for you. 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). Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the life of your loan. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. On the other hand, if you can see yourself selling your home in the near future, an ARM with a small initial rate might be the ideal way to reduce your monthly payment.
Are you refinancing primarily to "cash out" some home equity? It could be you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. In this case, you need to get a loan above the remaining balance on your present mortgage loan.So you need You may not increase your mortgage payemnt, though, if you have had your current mortgage for a while, and/or your loan interest rate is high.
Do you want to cash out a portion of your home equity to consolidate other debt? Good plan! If you hold some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay off your mortgage loan sooner? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, even though your payments will usually be higher than they were. Conversely, if your current longer term loan has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the many benefits of refinancing, please contact us at (800)593-0143. We are here for you.
Curious about refinancing? Give us a call at (800)593-0143.