Refinancing: Which Option is for You?

The huge number of refinance options available to borrowers is truly breathtaking. Contact us at (877) 226-8191 and we can match you with the loan program that is ideal for your needs. There are several things to keep in mind as you look at your choices.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a initial low payment may be a wiser way to reduce your payments if you expect to move in the next few years.

Refinancing to Cash Out

Are you wanting to cash out some of your equity with your refinance? Your home needs renovating; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. In this case, you will need to get a loan higher than the balance remaining on your existing mortgage.With this goal, you will You'll need to apply for a loan for more than the remaining balance on your present home loan in that case. However, if your loan interest rate is high now and you've had it for quite a few years, you may be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Your Debt

Perhaps you'd like to cash out some equity (cash out) to put toward other debt. If you have any higher interest debts (such as 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 home equity built up to make it work.

Building up Equity More Quickly

Are you planning to fatten your equity faster, and pay off your mortgage loan more quickly? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Even though your monthly payments will usually be increased, you can be paying less interest; so your equity will build up faster. However, if you've had your existing thirty-year loan for a number of years and the remaining balance is relatively low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please call us at (877) 226-8191. We are here to help you reach your goals!

Want to know more about refinancing your home? Call us at (877) 226-8191.

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